Forgot Login?   Sign up  
Please select your page

09.08 - GBP vs Euro

13.03.2019 small

 

Suddenly, the idea of pound parity seems less far-fetched as the risk grows that Britain may crash out of the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock Inc (NYSE:BLK)., is short the pound and sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 on such an outcome. That isn’t the majority view yet -- a Bloomberg survey this month estimated the pound will slide to $1.10 should the U.K. exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the Oct. 31 deadline with or without an agreement, fueling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling slid almost 7% in the past three months, the worst performance among major currencies, to about $1.2140 on Thursday.

bloomberg.com