Sharp Downgrades to British Pound vs Euro & Dollar Forecasts at Goldmans and JP Morgan
By: Will Peters
Where is the bottom for the British pound?
Of course the currency cannot be sold indefinitely, but a look at the latest FX forecast updates coming in from the institutional research sector suggests there is still some downside to be had.
The world's largest investment bank, JP Morgan, have revised lower their forecasts for the British Pound following the UK’s decision to quit the European Union following the referendum on June 23rd.
JP Morgan's FX Strategist John Normand is bearish the pound as a result of the combination of zero rates and a widening current account deficit.
In plain english this means that the combination of these two factors has reduced radically - or will reduce - the amount of foreign investment coming into the UK, which translates into less demand for sterling.
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