Theresa May plays down 'deal or delay' reports
The investment banking division of RBS & NatWest have today released their statement on Brexit. They believe a no-deal scenario will be avoided and that Sterling will peak June/July (£-€1.18/£-$1.35), before dropping off later in the year.
These views are in-line with HSBC's forecast who think there is now a 55% chance of a new deal going through. Both are expecting if May's new deal isn't accepted/passed, that a 3-month extension will take place. Either way, it looks as if they have set their sights on a stronger £ in the coming months.
Theresa May told Parliament yesterday that if no deal has been agreed by 26th February, Parliament will be given the opportunity to have a say on the way forward. We would once again then expect more tabled amendments, but this time with a request to delay Brexit being voted in. This would be positive for the Pound.