The British pound has spent the better part of a decade trying to claw back what Brexit took from it. Goldman Sachs thinks it may have clawed back too much.
In a client note from strategist Stuart Jenkins, the bank declared Sterling the most overvalued currency among the G10, a group that includes the US dollar, euro, Japanese yen, and seven other major currencies from developed economies. The core argument: the pound’s recovery from its post-Brexit collapse has now exceeded what the UK’s underlying economic fundamentals can justify.
The Brexit math still doesn’t add up
According to Goldman’s analysis, Brexit permanently dented Sterling’s fair value by approximately 6%.
Goldman’s proprietary GSDEER model, which stands for Goldman Sachs Dynamic Equilibrium Exchange Rate, had already flagged Sterling as the most structurally overvalued G10 currency back in January 2026. The latest note reinforces that earlier call and suggests the gap has only widened since.
