Brexit deal probability up from 60% to 70% – Morgan Stanley

Morgan Stanley joins the market bulls expecting a soft Brexit in its latest forecasts for a trade deal ahead of the autumn talks between the European Union (EU) and the UK.

The bank cites the reduction of 10% from the previous 40% expectations of a World Trade Organization (WTO) terms based departure of the ex-neighbors.

The resultant 70% soft Brexit probabilities also take clues from an increase in the mixed deal favors to 60%, from the previous 50%.

It should, however, be noted that the bank anticipates no change in the 10% probabilities that favor the UK will have a double deal with the EU. This puts out of the single market with an agreement on enhanced equivalence in financial services provided in exchange for EU access to UK fishing waters and close alignment on trade in goods.

GBP/USD remains bid…

Ever since the EU and the UK agreed to give a final push to the Brexit talks, GBP/USD has been on the bids. The Cable currently probes a 12-day high amid the market optimism.

Read: GBP/USD Price Analysis: Refreshes 12-day top but rising wedge on 4H probes the bulls

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD regains 0.73 on Biden transition news, mixed Aussie trade data

AUD/USD keeps its range around 0.7300 amid mixed Australian trade data and the upbeat market mood. The risk sentiment got a boost following reports that the US GSA has started the formal Biden transition process. S&P 500 futures rise 0.50%. RBA Debelle's speech awaited. 


Gold in bearish consolidation below $1840, remains vulnerable

Gold (XAU/USD) is nursing losses in Tuesday’s Asian trading, having slumped 2% on Monday to reach the lowest levels in four months at $1831. Vaccine progress, stronger US data hammer gold prices. Focus on vaccine updates and risk sentiment for fresh impetus.

Gold news

USD/JPY: Rises for third day on Biden transition news, eyes BOJ’s Kuroda

USD/JPY trims early-Asian losses as Tokyo open welcomes the risk-on mood. Trump concedes defeat, ex-Fed Chair Yellen likely be the next Treasury Secretary. Vaccine hopes, stimulus expectations and Brexit optimism favor bulls.


Bitcoin risks a correction to $12,000

Peter Brandt, author, and publisher of the Factor Report, has exited around 50% of his Bitcoin position. The veteran trader believes Bitcoin might be poised for a correction to $12,000 in the near future.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info