Bulletin
Investor Alert

London Markets Archives | Email alerts

Dec. 5, 2019, 5:00 a.m. EST

Pound could hit $1.35 if Conservatives win and Brexit pact reached, UBS says

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    British Pound (GBPUSD)
  • X
    FTSE 100 Index (UKX)
  • X
    M&G PLC (MNG)

or Cancel Already have a watchlist? Log In

By Steve Goldstein, MarketWatch


Getty Images
The pound has been rising in value.

The pound could reach $1.35 if the Conservatives win the December 12 general election and a Brexit pact is ratified by Parliament, according to a strategy note from UBS.

The UBS chief investment office did say it will be tough for sterling to move past $1.35 as the next phase of negotiations ensues.

“These talks will probably be nearly as drawn-out and fractious as their predecessors, and the prospect of the U.K. reverting to a World Trade Organization trade relationship with the EU will loom large once again, with the next critical deadline possibly arriving by July. By then, the U.K. would have to decide whether to extend the transition period beyond December 2020,” it said.

The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0077% again was higher on Thursday, rising to $1.3133 from $1.3105. The strength in sterling, which is up 6.5% over the last 3 months, weighed on the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.09% , since multinationals generate the bulk of their revenue outside of Britain. The FTSE 100 fell 0.22% to 7172.36.

Also read: Europe stocks advance while British equities get left behind as sterling climbs

Elsewhere, M&G shares /zigman2/quotes/214468176/delayed UK:MNG +2.04%  dropped for a second day, losing 4%, after the fund manager on Wednesday suspended redemptions from its flagship property fund

/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3052
+0.0001 +0.0077%
Volume: 0.0000
Aug. 7, 2020 4:59p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,032.18
+5.24 +0.09%
Volume: 0.00
Aug. 7, 2020 4:59p
loading...
/zigman2/quotes/214468176/delayed
UK : U.K.: London
169.85 p
+3.40 +2.04%
Volume: 2.79M
Aug. 7, 2020 4:35p
P/E Ratio
4.15
Dividend Yield
N/A
Market Cap
£4.42 billion
Rev. per Employee
N/A
loading...

Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.