In a recent research note, experts at Goldman Sachs were upbeat on the pound, commenting that sterling "tops the list" in the G-10 basket of major currency crosses.
The analysts are sticking with their bet that sterling will rise against the dollar , with a target of 1.31.
"Combined with still-high rates [this] could attract capital flows into GBP after many years of being a structural sell," the UBS analysts added.
She added, "The tone of many of the policies announced by the new Labour government in recent days are market friendly ...
The appearance of order in the U.K. government coupled with an expectation of a warmer relationship with the EU should provide for some optimism."
Persons:
Goldman Sachs, Keir Starmer's, Jane Foley
Organizations:
Bank of, UBS, Labour Party, FX, Labour
Locations:
Bank of England