According to the latest Reuters poll of 50 foreign exchange specialists, a majority of them believe Cable to rise 6 percent to $ 1.37 in a year, but warn that it could sink if the UK sees a no-deal Brexit.
Key Findings:
“Median forecasts in the Aug.31-Sept 5 poll put Cable at $1.28 in a month, $1.32 in six and $1.37 in a year.
But the pound will instead fall 8 percent in the immediate aftermath if Britain leaves the EU without a deal in March 2019, the median forecast from an extra question suggested.
The most pessimistic response was for a 15 percent slide.
The uncertainty was also reflected in the range of forecasts, between $1.20 and $1.41 in six months’ time – around when Brexit is due to happen – and $1.2258 to $1.51 in a year.
Against the common currency, the pound will move little, which has been the case for a long while.
In a month, one euro will get you 90.0 pence, in six months 89.0 pence and in a year 88.0 pence, not far from the 89.6p it was at on Wednesday.”
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