According to Goldman Sachs, a combination of firm US Dollar and less favourable global growth conditions will undermine the Pound. It has lowered both the 3 and 6-month Pound to Dollar (GBP/USD) exchange rate forecasts to 1.24 from 1.30 and 1.33 respectively previously. The 12-month forecast has also been lowered to 1.28 from 1.35. GBP/USD is trading around 1.2550 ahead of this week’s Bank of England (BoE) policy decision. As far as the US economy is concerned, Goldman still considers that the labour market is firm and that the Fed will have to keep high interest rates for an extended period which will underpin the ... (full story)