Mubasher TV
Contact Us Advertising   العربية

Sterling seen ‘biggest opportunity’ despite Brexit impasse - Goldman Sachs

Sterling seen ‘biggest opportunity’ despite Brexit impasse - Goldman Sachs

Mubasher: Goldman Sachs views the sterling pound (GBP) as the “biggest opportunity” among its developed-market peers, as a probable resolution to the Brexit deadlock seemed imminent, according to Bloomberg.

The UK parliament failed to agree on the four alternative plans to Prime Minister Theresa May’s Brexit deal in a Monday vote.

“Sterling is maybe the biggest opportunity among developed market exchange rates today,” Goldman’s global foreign exchange (FX) and emerging market strategy co-head Zach Pandl told Bloomberg on Tuesday.

The House of Commons rejected a plan to remain in the European Union’s (EU) customs union, by just three votes, while it could be put to vote again on Wednesday.

Within the next day or two, an orderly Brexit approach, which may comprise a permanent customs union and a second referendum, may emerge rather than a prolonged standstill or no-deal departure scenario, Pandl predicted.

“We’re coming to a big finish here […] we’re making progress despite these failed votes,” he said.

By 2:14 pm GMT, the GBP/USD pair fell 0.51% to $1.3036, while the EUR/GBP pair rose 0.38% to GBP 0.8591.