Deutsche bank heads believe Britain could soon pay for leaving the European Union (EU). The bank has issued a startlingly pessimistic outlook for 2017, reporting they believe the pound could fall to $1.06 against the dollar by the end of the year.
But that’s not all, as reported by Express. According to Deutsche Bank, the pound could reach parity with the euro, representing a 15 percent decline against the dollar and euro. “We do not see sterling (currently) fully pricing a hard Brexit outcome,” said Deutsche bank in a 45-page report about Brexit. “Combined with limited adjustment in the UK’s current account deficit and slowing growth, we see further downside, and forecast $1.06 in by year-end.”
George Saravelos, Deutsche Bank’s global co-head of foreign exchange, said the pound could fall 16 percent – that would be to $1.05 – due to the “incredibly complicated” exit of Britain from the European Union. This week, the sterling traded at approximately $1.25 against the dollar.
Despite Deutsche Bank’s stormy prediction in Britain, the massive bank just announced it would open a new branch in London. Even as Goldman Sachs and Morgan Stanley said they would begin moving jobs.