Pound could fall below €1 after Brexit completion - Amundi

First time in history

Tom Eckett
clock • 2 min read

Analysts at Amundi have predicted sterling will fall below €1 for the first time in history once the UK officially leaves the European Union.

In a note titled Brexit: How the future trade agreement is going to shape financial assets, the analysts said the most likely outcome was an "intermediate relationship" with a free trade in goods but very limited passporting in financial services. This result, which they assigned a 50% probability to, would cause sterling to fall to around €0.95 against the euro and $1.30 against the US dollar, as the UK's trade surplus in financial services would no longer be there to counterbalance the large trade deficit in goods. Sterling is currently trading at €1.13. Didier Borowski, head of mac...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

More than half of IFAs feel negative about a potential Labour govt

More than half of IFAs feel negative about a potential Labour govt

Advisers favour Conservatives when it comes to their clients and business

Isabel Baxter
clock 09 May 2024 • 2 min read
Elections and advice: Planning in political and legislative uncertainty

Elections and advice: Planning in political and legislative uncertainty

‘It should not be based on speculation, always plan on current legislation’

Isabel Baxter
clock 08 May 2024 • 3 min read
'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read