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According to the latest Reuters poll of 50 strategists, the British pound will surrender the recent gains against the US dollar and extend the downside if the UK fails to seek an extension beyond June 30 deadline to reach a post-Brexit trade deal with the European Union (EU).

Key findings

“The pound is expected to have weakened to $1.23 by end-June. week.

Still, Reuters polls of economists have repeatedly said the two sides would eventually thrash out a free trade deal and the pound was expected to have strengthened around 1.6% to $1.28 in a year.

All but two of 23 respondents to an additional question in the poll said sterling would weaken in early July if there is no extension.

The euro common currency will move little against the pound, the poll found. In one month a euro will get you 90 pence and in a year it will be worth 88p.”

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