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Time to buy sterling as case for second referendum builds - BNP Paribas

Published 10/01/2019, 14:04
Updated 10/01/2019, 14:05
© Reuters. FILE PHOTO: Pound coins are seen in this photo illustration taken in Manchester, Britain

LONDON (Reuters) - Sterling should strengthen more than 5 percent from current levels to $1.36 and 85 pence per euro as consensus builds for a second referendum on Britain's European Union membership, BNP Paribas (PA:BNPP) said on Thursday.

Its current base case was for Article 50 to be extended with a "second EU referendum the likely outcome, or even a pre-condition for an extension.

"Enough downside is priced in for now, in our view. The FX market appears to have priced in enough political and economic uncertainty," the French bank said.

The pound is currently trading at $1.2770 and 90.325 pence per euro.

Latest comments

Second referendum = civil unrest not seen since a very, very long time. Hopefully the political elite is aware and ready for the mess they have created.
I doubt that May's offer of juicy offers to lure support from labour doesn't seem to have done the trick. So possibility of 2nd Referendum is in fact gaining strength.
The only consensus we have is that May's deal is a bad deal.
No it’s a 1 out of 10 possibility! Gen election is a 2 out of 10. Why do reuters get this ‘rubbish’ news from ? The fimbles!
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