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19.11.201809:39 Forex Analysis & Reviews: The fate of the pound may worsen as investors see a lot of risks.

Análisis a largo plazo

Exchange Rates 19.11.2018 analysis

Pound traders are now quite obviously facing several scenarios, as the ring of political upheavals is increasingly narrowing around British Prime Minister Theresa May, and this has a negative effect on the British currency.After the events of last week, which clearly showed that the May Brexit plan does not have the necessary support, investors are now wondering what the next step of the Prime Minister will be if her deal is rejected in parliament. Options for resolving the issue include negotiating another deal with the European Union, holding a second Brexit Referendum, or even a general election, since Theresa May does not exclude the possibility of voting on her lack of confidence and dissatisfaction with her leadership.Any of these events would nullify all efforts to reach a "divorce" agreement between the UK and the EU by the end of the year, and against this background, the pound could fall to $ 1.20, according to Credit Agricole SA. BlueBay Asset Management and Aberdeen Standard Investments are among those who are also pessimistic about the pound rate."The chance that an existing transaction is taking place looks very low," said Mark Dudding, cash manager at BlueBay, who controls the equivalent of $ 60 billion. "In the short term, the likelihood of no transactions will increase."

Fedor Pavlov,
Analytical expert of InstaSpot
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