Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Pound set to reach highest level against US dollar since 2021, says Goldman Sachs

by September 24, 2024
September 24, 2024
Pound set to reach highest level against US dollar since 2021, says Goldman Sachs

Goldman Sachs has predicted that the pound will surge to its highest level against the US dollar in over three years, buoyed by strong UK economic growth and a gradual reduction in interest rates by the Bank of England.

The US investment bank forecasts sterling will reach $1.40 within the next year, a significant leap from its current value of $1.33 and surpassing its previous projection of $1.32.

Goldman also anticipates that the pound will be among the top-performing currencies against the US dollar over the coming year, with the euro also rising to $1.15 from $1.11.

According to Goldman, the Bank of England’s “patient” approach to lowering interest rates, in contrast to more aggressive cuts from other central banks, will be a key driver of the pound’s strength. Last week, the Bank chose to maintain interest rates at 5%, while the US Federal Reserve reduced its benchmark rate to a range of 4.75% to 5%. Historically, higher interest rates tend to boost demand for a currency by offering better returns on investments like bonds.

Goldman Sachs analysts also noted that the UK’s “solid growth momentum” would fuel sterling’s rise, especially as a robust US economy increases global demand for riskier assets such as the pound. Reduced political volatility under the Labour government is another stabilising factor, as confidence in the currency rebounds following the turbulence of the Truss administration’s mini-budget in September 2022.

Rachel Reeves, the Chancellor, reinforced Labour’s commitment to driving economic growth in her speech at the party’s conference, marking the first time a sitting chancellor has spoken at the event in 15 years. Reeves pledged an ambitious budget on October 30 that would reject austerity while prioritising public investment and working in tandem with the private sector to bolster the economy.

However, she acknowledged the need for tough fiscal decisions, citing a £22 billion deficit inherited from the previous government, which Labour plans to address through a combination of tax increases and spending adjustments.

Read more:
Pound set to reach highest level against US dollar since 2021, says Goldman Sachs

0
FacebookTwitterGoogle +Pinterest
previous post
Starmer promises ‘light at the end of the tunnel’ despite looming tax rises
next post
New poll indicates whether Harris or Trump is making gains with younger voters

You may also like

Calls for Sunak to expand free childcare to...

February 9, 2023

Top 10 Strategies to Start Clearing Your Business...

August 10, 2022

The Advantages of Business Expense Cards in Contemporary...

November 20, 2024

Judges approve use ChatGPT in legal rulings

December 12, 2023

Train operators and union leaders criticise draft UK...

April 27, 2023

The Future Of Titration In Business: Automation And...

September 15, 2023

TikTok opens datacentre in Dublin in bid to...

September 6, 2023

Rachel Reeves warned against ‘anti-enterprise tax rises’ in...

October 8, 2024

Tips for maintaining your industrial tools and equipment

May 17, 2023

UK’s high debt poses challenges for new government,...

July 10, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved