Even without a further shift in monetary policy under a new BoE governor, sterling is set to resume its weakness, argues Goldman Sachs. GS outlines 5 reasons behind this bearish sterling outlook: 1. Notably high inflation rates in the UK have started to erode the UK's competitiveness, as can be seen by a gradual drift lower in GS tradeweighted sterling GSDEER ‘fair value’, for example. Since the mid-2000s, sterling has lost about 8% competitiveness on this basis. 2. As Euro area-related risk premia decline, the safe haven flows that boosted the pound vis-à-vis its largest trading partner, the EUR, have reversed. D ... (full story)