A snippet from Citi on Brexit and sterling (bolding is mine)
- We are not convinced that a Withdrawal Agreement between the EU and UK Government will be ratified in the UK Parliament, and hence we are reluctant to forecast GBP much higher from here.
- However, the Benn Act means that 19th October is the de-facto deadline on a deal before the 31 October A50 deadline, and thus acts as a floor under GBP in the short term. A50 extension to January 2020 closely followed by a General Election are the most probable outcomes.
The bank further adds that Speaker Bercow's turning down of PM Johnson's vote boosts the prospect of a UK general election/ 2nd referendum
- GBP/USD may pull back to 1.25-1.26 area
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Be sure to keep track of developments as they occur, this the latest:
