GBP: the countdown
All parties involved in the Brexit process are now openly admitting that the most probable scenario is a no-deal end of the story. Ursula von der Leyen, Boris Johnson, other country leaders – most say bridging the UK to the EU is now quite unlikely. There are three days to go, still. We’ll see, maybe Sunday will shine at us with a suddenly made deal.
In the meantime, the GBP is quite unwell. Against the USD, it lost all the gains of the last two weeks and moved down to 1.32.
Against the EUR… well, you see what’s happening. 0.90, 0.91, 0.92… If September highs above 0.92 get crossed, it’s only April’s resistance of 0.95 left ahead in the upside. Is it likely? Quite so. The situation is indeed pretty extraordinary. However, many observers comment that the no-deal Brexit has been factored in back in 2016 when the divorce was decided. We’ll see about that then, and so far, let’s stick to watching 0.92.
