Goldman Sachs: The British pound is currently the most overvalued currency in the G10.

Goldman Sachs Group said that the pound will face continued pressure in the future. Since the sharp drop after Brexit, the pound has rebounded all the way and has now become the most overvalued currency among major developed currencies. Stuart Jenkins, a strategist in London for the bank, wrote in a client research report that the pound's trend has diverged from its fundamentals, and "Brexit may lead to a fair currency devaluation of about 6%". After a significant rebound in actual exchange rates, "the pound is now the most overvalued currency in the G10". Since the UK formally left the EU in 2020, the pound has risen by about 1.5% against the US dollar, but it is still about 10% lower than before the Brexit referendum. With most of the discounts now erased, some analysts believe that there is limited room for further pound appreciation.