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POUND BOOST: Sterling 'could emerge from Brexit as HIGHEST-PERFORMING currency this year'


Zach Pandl, co-head of global currency and emerging-market strategy, is predicting Sterling could surge versus its G-10 peers, otherwise known as the currencies that change hands the most, as the risk of a no-deal Brexit continues to decline. The pound has climbed in recent days, even smashing through the €1.140-barrier against the euro at the end of last week, after Theresa May saw her Brexit proposal crash out of the Commons after being rejected in record-breaking fashion by MPs. The Prime Minister then saw off a subsequent confidence motion called by Labour leader Jeremy Corbyn, with Mrs May surviving by a margin of 325 to 306. Currency analysts claim the climb of the pound could be down to the risk of Britain leaving with no-deal being reduced since Mrs May lost the vote, or investors eyeing up an increased chance of Britain staying in the European Union altogether.

Since the Brexit referendum took place, the pound is down 14 percent against the euro and 13 percent against the US dollar compared to the day of the vote in June 2016, according to FairFx.

Today the pound has lost some of its recent gains and is down 0.01 percent against the euro, trading at €1.1329 around 2:30PM UK time.

At the same time versus the US dollar, the pound is worth $1.2871.

Mr Pandl predicted a bright few months for Sterling, in particular against other G-10 exchange rates, which include: the euro, US dollar, Japanese yen, Australian dollar, New Zealand dollar, Canadian dollar, Swiss franc, Norwegian krone and Swedish krona.

He told Bloomberg: “We would read the developments over the last week as pointing toward a later, softer Brexit or potentially no Brexit at all.

“We think it’ll be the highest-performing G-10 exchange rate this year.”

The Prime Minister is due to update MPs on her next Brexit move for Britain leaving the EU later today.

Mrs May will detail her next moves for Brexit in written and verbal statements to the House of Commons.

The Conservative leader will also table a ‘neutral’ motion to be debated and voted on – along with any amendments tabled by MPs – on Tuesday, January 29.

This week will see Mrs May reaching out to MPs, business leaders and trade unionists in an attempt to find a way forward.

In latest updates, Downing Street has dismissed reports that Mrs May is considering rewriting the Good Friday Agreement or seeking a separate deal with Dublin in order to break the Brexit deadlock over the backstop.

A spokesman said: “It’s clear already that a significant number of colleagues have expressed concerns around the backstop.

“That’s one of the areas that we are going to be looking at.”



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