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?
