Will the pound continue to fall? Yes, by a fifth says Deutsche Bank


Deutsche Bank has forecast that the pound will continue to fall in value, falling by as much as fifth from its current value by the end of the year. In a forecast, the bank noted that the value of the pound has not fully factored in a hard Brexit, presenting room for further decline, falling to as low as $1.06 compared against the dollar:

In one of the most pessimistic forecasts for sterling yet among the world’s big banks, they also said it could fall towards parity with the Euro. That would represent a fall of around 15 percent against both the dollar and euro.

In a 45-page special report on Brexit, they said: ‘We do not see sterling (currently) fully pricing a hard Brexit outcome.

‘Combined with limited adjustment in the UK’s current account deficit and slowing growth, we see further downside, and forecast $1.06 in by year-end.’

News Source: DailyMail

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