Goldman Sachs: “case for idiosyncratic Sterling weakness has diminished this year” … but | Forexlive

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• Goldman Sachs argues that the case for structural GBP weakness has diminished this year but stays short of turning outright GBP bull.
• “We highlighted that the case for idiosyncratic Sterling weakness has diminished this year. For one, the drop in natural gas prices has led to a much more upbeat growth outlook, which was reflected in the February PMIs. Second, while in our view the Windsor deal is not a game changer in itself (it mostly affects trade between Northern Ireland and the rest of the UK), it highlights that the political winds are (for now) blowing towards an “ever-closer Union”, and that is likely to be the course into the next election,” GS notes.
• 
  “However, we still would by no means be turning into structural Sterling bull,” GS adds.

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