Goldman and Nomura See Pound Sliding to Three-Year Low Against Euro

In a week when political upheaval and expectations of imminent Bank of England interest-rate cuts weighed heavily on the pound, strategists warned that the currency risks sliding toward a three-year low against the euro.

Strategists at Goldman Sachs Group Inc. see the pound weakening 6% against the common currency to 0.9200 in 12 months. Meanwhile, Nomura Holdings Inc. envisages a drop of 3% to 0.8950 by the end of April. The currency pair traded around 0.8690 on Friday.