Goldman Sachs says global dynamics now dominate Sterling’s drivers, shifting focus from UK domestic macro to terms‑of‑trade shock.
Recent UK data showed resilience, contrasting with deteriorating Euro‑area figures, partially reversing last year’s underperformance theme.
Goldman Sachs warns Sterling remains overvalued on GSDEER metric, with fiscal, political risks and limited BoE rate‑hike prospects.
The bank expects Sterling to underperform versus USD and AUD, stay sensitive to global risk sentiment and May 7 election risks.