Bank predicts Pound could fall against Euro

With November drawing to a close and the festive season fast approaching the currency market will begin to become more stagnant as we approach 2018. This is due to little or no significant data being released around this time of year. However, this does not mean current rates will remain where they are from now until the new year. Throughout this year sentiment has more or less taken over and driven the course of Sterling’s demise against the major currencies and this is likely to continue with the absence of major data releases. With fears that come along with Brexit and still no deal being struck in Brussels the Pound could continue the downward trend into the new year. Switzerland’s largest bank UBS group have commented on what they think the forecast is likely to be in the coming months. They predict that the Pound could fall within 5 cents of parity with the Euro. UBS Strategist Yianos Kontopoulos from the banks London office said “Brexit negotiations remain inconclusive, with risks to Sterling still skewed to the downside due to the UK’s vulnerable external position. We remain bearish on the Pound”.

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