Goldman Sachs has predicted the value of the pound will surge against the dollar in the year ahead, in a big win for British tourists.

The US investment banking goliath is forecasting that the pound will buy $1.40 in 12 months time, up from the $1.33 it buys currently, The Telegraph reports.

It comes after the US Federal Reserve slashed interest rates by a sizeable half a percentage point last week, after which the pound rose one percent against the dollar.

The company has also slashed its…