Pound to Rally Higher in the Event of a Soft Brexit
According to a Reuters poll, leaving the EU with a deal in hand can help strengthen the Pound. However, a no-deal Brexit could weaken the Pound further in the coming months.
In May, the Pound fell to its weakest levels in two years against the Euro, while the price action remained somewhat muted as it waited for updates on Brexit. Currently, markets continue to wait to find out who the next Prime Minister in the UK will be, for guidance on which direction Brexit could take.
In the lead presently is Boris Johnson, a well-known Brexiteer who has repeatedly campaigned for Britain to leave the EU on October 31, even if it means leaving without a deal. The Reuters poll reveals that in the event Britain’s departure from the EU with a deal, GBP/USD could rally higher to touch anywhere between 1.30 and 1.36.
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