Societe Generale’s Global Head of Foreign Exchange Strategy, Kit Juckes, told CNBC Monday that the pound is probably hovering around the right level, but could ship value against both the euro and dollar this week.
Juckes said for sterling he was pricing in a “no deal” at somewhere around $1.20 and the present pricing seemed to adequately reflect current tension.
“As a long-term traveler, sterling is very beaten up down here,” he added, before noting that any shock cancellation of Brexit would likely see the currency rocket to $1.50.
Over at Nomura, the London-based foreign exchange strategist for Europe, Jordan Rochester, told CNBC Monday that the pound was being sustained by slight dollar weakness, trader commitment to the euro versus the dollar, and the majority in the U.K. parliament that are against allowing “no deal.”
“Whilst it is a risk it’s no longer the main focus. Instead it’s what sort of deal can May secure in time and/or article 50 extension that is driving the narrative for now,” he said via email.