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Goldman Sachs raises Brexit odds to 65%

Goldman Sachs raises Brexit odds to 65%

Mubasher: Goldman Sachs said it raised the chance of reaching a Brexit deal to 65% from 60%, after the UK and European Union (EU) reached a new withdrawal accord, which remains to be approved by the House of Commons, Reuters reported.

EU leaders unanimously backed a new Brexit deal with the UK on Thursday, which was reached as Prime Minister Boris Johnson was heading to Brussels to join a two-day summit.

Goldman lowered the odds on no-deal departure to 10% from 15%, while it made no change to its estimate on the probability of no Brexit happening at all at 25%.

The US investment lender kept its base case that the UK will exit the bloc with a deal on 31 October.

However, Premier Johnson is still facing the challenge of getting his new withdrawal agreement passed through parliament, especially after the Democratic Unionist Party (DUP), his key ally, said it could not approve the customs arrangements relating to Northern Ireland in Downing Street’s Brexit deal.

Adding to that, Labour Party leader Jeremy Corbyn said that his party was “unhappy” with the new deal.

By 11:03 am GMT, the GBP/USD pair ticked down by 0.05% to $1.2884, while the EUR/GBP pair went up by 0.11% to GBP 0.8639.