Comments via NatWest on the UK election (coming December 120
A majority for Boris Johnson's Conservative Party will send GBP/USD up to near 1.35
- NW recommend GBP longs against CHF.
- this outcome is NW base case
- NW say the election is the most important event for Brexit in the 3.5 year process
- current sterling valuations are ~¾ cent too low versus USD and ~¼ cent too low versus EUR
- NW project that the Withdrawal Agreement will be ratified in January 2020
- optimism will however fade as trade negotiations point toward a harder Brexit
