19 October 2020 | Brexit negotiations at a standstill
Over the week-end, Michael Gove, a senior British official, said that the door was ajar for negotiations and asked for the EU to make a step in their direction. German Chancellor Angela Merkel had already made the same point. Many view the final deadline as early November as it can take up to two months to ratify a deal and, as is typical of EU negotiations, they conclude at the last hour.
What does it mean?
Moderates odds of a no deal Brexit are priced into the Pound and sadly the odds are likely higher. Having said this, the Pound is very cheap and likely to depreciate only 4 to 6% in a no deal scenario.