According to Jinshi Data, Goldman Sachs said that the Bank of England may decide to start easing policy on Thursday, which will have much less impact on the pound than market participants fear.

Kamashya Trivedi, co-head of global foreign exchange strategy at Goldman Sachs, noted that the Bank of England is at a particularly interesting juncture following the change of government, with markets overly focused on the impact of rate cuts on the pound.

If the Bank of England does cut rates, it will be part of a G10 group of rate cuts, and the impact on the pound will be much smaller than in past years. The current target for the pound against the dollar in three months is expected to be 1.27, and the target in 12 months is 1.32.