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