Vessey continued: “Even though the bill, which if passed by Parliament would breach international law, has rocked sterling sentiment amidst increased fears of a no-deal Brexit, all hope is not lost.

“Tentative concessions on fisheries were made by the UK in the last round of trade talks and the EU is looking to extend clearing of Euro derivatives by the City of London for another 18 months.

“These smalls steps towards a compromise are likely supporting the pound for now.

“Nevertheless, if a deal isn’t reached by the EU summit on October 15, the probability of a no-deal scenario is likely to increase, and history would suggest GBP/USD could fall to $1.20, whilst GBP/EUR may threaten levels closer to parity in this instance.”



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