Brexit most significant economic impact on the average Brit in the past year was the monumental decline in the value of GBP. For the ordinary citizen in the country the holidays became more expensive and the imported goods significantly increased their price. The strong downturn lasted for several months, after which the course subsided and is currently correcting the downward movement stemming from the British decision.
It was all right until the negotiations for Brexit did not reach a dead end. It looks like there is a real possibility that Britain will implement the so-called "Hard Brexit". This scenario is characterized by the UK not having the right to a trade deal with the EU. If it comes to that moment, it is very likely that we will see a strong drop in the pound that can form a new, lower bottom than that formed after Brexit.
Here are the forecasts of leading Wall Street banks
1. JP Morgan Asset Management - $1.15 by the end of 2019
2. ING - $1.15, not committing to a specific period.
3. HSBC - about $1.10
4. Nomura - between $1.10 and $1.20
5. BNP Paribas Asset Management - less than $1.20
The average value of major bank forecasts is GBP/USD to fall around $1.17 with a solid Brexit.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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