Economists at Standard Chartered think the market is too downbeat on the potential for a Brexit deal and forecast GBP/USD at 1.40 by year-end and EUR/USD at 1.16.
“We think the market is too downbeat on the potential for a ‘good’ outcome: a deal or extension of the transition period.”
“We forecast GBP/USD at 1.40 at year-end based on a good outcome (and EUR/USD 1.16).”
“In a ‘bad’ outcome – no deal - we could see both GBP and EUR trade to 1.10 versus the USD (and hence EUR/GBP to parity).”
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