The Bull and Bear Case for the Pound in a Post-Brexit Deal World
- Valuations, potential second referendum may support sterling
- Weak fundamentals, cautious BOE may limit currency upside
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So we have a Brexit deal, at least until Parliament convenes on Saturday. This opens a new chapter for the pound, which has traded between $1.20 and $1.30 in the past six weeks as odds shifted from a no-deal Brexit to a last-minute compromise with the European Union. The math at the House of Commons is tight and the potential range of outcomes -- from a deal to a general election -- remains wide. What happens from here could force the battered currency to break out of either end of its recent trading pattern.
Markets Live’s Ven Ram, Eddie van der Walt, Laura Cooper and Richard Jones lay out the bull and bear cases for sterling in a post-Brexit deal world.