Pound Might Collapse by the End of the Year, says Deutsche Bank

Pound Might Collapse by the End of the Year, says Deutsche Bank

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.

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