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20 November 2018

Bloomberg: Goldman sees pound gains as no-deal Brexit least likely scenario


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The pound could actually strengthen against the euro next year if the U.K. achieves a Brexit deal, according to Goldman Sachs Group Inc.


Sterling could gain as much as 4 percent, representing “reasonable upside”, as long as Britain moves to a transition period in March that maintains the existing relationship with the European Union, the bank said in a note this week. A reduction in uncertainty, the U.K.’s economic resilience and short market positioning should all help the currency, it said.

“We think a ‘no deal’ outcome remains the least likely scenario,” wrote Goldman analysts including Zach Pandl, co-head of global currency and emerging-market strategy. “Our base case continues to be that the U.K. Parliament will ratify a version of the Withdrawal Agreement in December or January.” [...]

Full article on Bloomberg



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