Here is what could send EUR/GBP to parity (spoiler ... a no deal Brexit)
Comments via BNY Mellon Investment Management on sterling, euro and Brexit.
GBP to head towards parity against both the USD and euro in the event of no deal Brexit
- under 'no deal' … big fall in sterling -- say 10% to 15% from here
- test parity against the euro, probably the dollar as well
- and BoE will be cutting rates
- For UK stocks, would be a benefit for FTSE 100 which has a lot of companies with foreign earnings
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Hmmmm - I do wonder how much a hard Brexit is 'priced in' and whether the dire GBP forecasts in such an event are perhaps too dire?
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