Goldman Sees Pound Gains as No-Deal Brexit Least Likely Scenario

The pound could actually strengthen against the euro next year if the U.K. achieves a Brexit deal, according to Goldman Sachs Group Inc.

Sterling could gain as much as 4 percent, representing “reasonable upside”, as long as Britain moves to a transition period in March that maintains the existing relationship with the European Union, the bank said in a note this week. A reduction in uncertainty, the U.K.’s economic resilience and short market positioning should all help the currency, it said.