Citibank: No-deal Brexit scenario could lead to a significant depreciation of GBP

Citibank analysts suggest that the GBP appears to be better supported at the moment as Brexit developments progress ahead of March 29 transition date.

Key Quotes

“With PM May now publicly accepting that a delay to Brexit beyond Mar29 is possible, an extension of Article 50 remains the highest probability outcome in the near term. That said, a ‘no-deal’ scenario still remains albeit with a smaller tail risk but if realized, could lead to a significant depreciation (5-10%).”