RBC grapples with early UK election risk
Bank puts probability of no deal at 5%, but should it occur sterling could drop 10%, says strategy head
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Sterling could come under renewed pressure as markets wrestle with the risk of an early election, according to Adam Cole, RBC’s London-based head of FX strategy.
The Canadian bank topped this week’s one-month forecast tables.
Furthermore, fat tails of possible Brexit outcomes – upside and downside – keep the bank’s overall GBP position neutral, according to Cole, with a view to tactically trade around these
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Sterling’s future is still very dependent on Brexit-related developments, the bank says
