One of Germany's largest banks thinks the British Pound is set for another strong year against the Euro. However, a key risk is an economic slowdown following Rachel Reeves' budget.

The British Pound is described as "a diamond in the rough," by Goldman Sachs in their new year-ahead forecast publication, in which a new set of post-election forecast targets suggest solid gains in the coming months.

Pound Sterling could lose further value against the Euro in the coming week if UK inflation and PMI data undershoot expectations.

"A bit more juice in sterling," says Kit Juckes, head of FX research at Société Générale.

Pound Sterling rose to its highest level against the Euro in two years following Donald Trump's win. Further gains are possible near-term.

Pound Sterling could be set for a run higher against the Euro into year-end thanks to the Bank of England's November guidance.

Pound Sterling is under near-term pressure against the Euro as it enters a week that will be dominated by a Bank of England interest rate decision.

Pound Sterling is in an uptrend against the Euro, but the near-term is likely to see more chop and churn.

Pound Sterling retains an upward bias favouring patience for those looking to buy euros, say technical analysts at leading investment banks.

Pound Sterling is in an uptrend against the Euro that looks set to extend in the coming five days; however, beware of volatility around Bank of England speeches and Thursday's PMI release.

GBP/EUR faces downside risks this week as any misses in inflation or wage numbers will be jumped on. And don't forget the ECB's interest rate decision on Thursday.

Our Pound to Euro Week Ahead Forecast looks for 1.19 to act as gravity but for weakness to be limited below here.

The Pound to Euro exchange rate could register further gains in the coming days amidst ongoing positive momentum. However, significant post-Brexit resistance levels are in play here.

Foreign exchange analysts at Goldman Sachs have raised their forecasts for Pound Sterling on account of ongoing economic resilience and a reasessment of the Dollar's outlook.

Pound Sterling Live and Corpay have launched the Pound to Euro forecast guide for year-end and the first half of 2025.

Pound Sterling has wind in its sails and further gains against the Euro are possible in the coming five days.

We forecast Pound Sterling to trade on the soft side against the Euro this week but don't see Wednesday's UK inflation report or Thursday's Bank of England decision having a lasting negative impact. Wednesday's Federal Reserve rate cut could prove supportive from a global perspective.

Pound Sterling came under renewed pressure against the Euro ahead of the weekend amidst a global equity market selloff that underpins how important external investor sentiment is. But this week sees the domestic calendar come alive again.

The British Pound has more fuel in its tank to drive outperformance against the Euro and Dollar over the medium term.

Pound Sterling has risen for six months in succession against the Euro, but a recent recovery stalled at 1.19 and we could see a pullback evolve in the coming days.