Eurgbp To Rise Goldman Sachs

last updated on

Eurgbp To Rise Goldman Sachs

Goldman Sachs Forecasts EUR/GBP To Rise

According to Goldman Sachs, the EUR/GBP pair is set to rise in 2026. This comes at a time when the GBP is already lagging behind its EU FX peers.

Goldman added that the UK data releases in the last few months were mostly fixed. Looking ahead, the data will remain the same, which is a key reason why EUR/GBP is set to rise this year.

UK Faces Softer Inflation And Labor Market

They think that the GBP faces pressure from a weaker labor market and softer inflation. These two things have offset the gains seen in the activity data.

So, Goldman Sachs thinks that the soft inflation and labor market will cause the UK economy to underperform. A direct result of this will be a weaker GBP against the EUR.

The bank also commented on how the global asset managers will have to adjust their hedge ratios. This is also something that goes against the GBP when we compare it with the Euro.

With all things considered, Goldman Sachs sees the EUR/GBP moving towards 0.8740. On the way down, Goldman has set the stop near 0.8595.

These targets clearly show that Goldman is looking forward to a weak Sterling. At the same time, it means the Euro currency will perform much better than the UK's Pound Sterling.

Even the short to medium trend of EUR/GBP shows that it is trending higher. For the rest of 2026, the overall trend for EUR/GBP remains bullish based on technical analysis, and that's exactly what the Goldman Forecast tells us as well.

The one thing that could help the GBP to gain ground is an increase in UK inflation and an improvement in the labor market. So with the absence of these things, the GBP will continue to trail behind the Euro and other European currencies.

In fact, the GBP is also set to lose against the USD and several other currencies. And if we talk about the BoE, analysts think the central bank will go through multiple rate cuts this year.

Trending Stories