brexit: The pound has come under intense selling pressure since Prime Minister May withdrew from her party leadership position, leaving markets with increased concern that the UK may be heading towards a harder Brexit, the bank said in a research note, according to The Guardian. Should this scenario materialise, pound-dollar could fall into the 1.00- 1.10 range. Morgan Stanley said the nervousness in financial markets over the hardline approach adopted by both Boris Johnson and Jeremy Hunt risked pushing the pound down from its current level of 1.24 to the lowest level since it almost reached parity in the mid-1980s. Morgan Stanley said that before Theresa May announced she was stepping down markets had envisaged a soft Brexit along with access to the single market or even a second referendum. Selling pressure on sterling has intensified since both Johnson and Hunt said the Northern Ireland backstop designed to keep an open border with the Republic of Ireland was dead. Markets have adjusted these probabilities sharply lower, the note added.
(news.financializer.com). As
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