Pound Could Plunge Further 13% in Case of No-Deal Brexit

(Bloomberg) --

Rising no-deal Brexit risk is roiling the pound. Bloomberg Economics’ modeling suggests that for every 1 percentage point increase in no-deal risk, trade-weighted sterling falls 0.2%. If the risk of a no-deal exit from the European Union dropped to zero, BE thinks trade-weighted sterling could rise 9%. If Britain crashes out without a deal, the pound could decline a further 13%.

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