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Goldman Sachs has exited its long GBP/CHF position with a small profit last week, noting that Sterling has underperformed its usual risk beta. Despite recent tactical setbacks influenced by Bank of England (BoE) Governor Bailey’s comments and geopolitical developments, Goldman Sachs maintains a constructive outlook on the British pound, supported by structural drivers and a positive global risk environment.
Key Points:
Exiting GBP/CHF Position:
BoE Communications and Policy Outlook:
Relative Performance and Market Dynamics:
Strategic Outlook and Structural Drivers:
Conclusion:
Despite recent tactical setbacks and underperformance against AUD, Goldman Sachs maintains a positive and constructive outlook on the GBP. The firm attributes this confidence to underlying structural factors and a supportive global risk environment, while remaining vigilant of potential volatility stemming from central bank communications and geopolitical risks. Investors are encouraged to consider these factors when positioning their GBP trades, recognizing the resilience and long-term strength of sterling.
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This article was written by Adam Button at www.forexlive.com.
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