Brexit deal is on the horizon, pound is growing

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Brexit deal is on the horizon, pound is growing

November 05, 2018 - 08:58
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Sharp increase of pound in the beginning of November demonstrated investors the example of what will happen to the UK’s currency, if Brexit deal will be made in recent weeks, Bloomberg reports.

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Sharp increase of pound in the beginning of November demonstrated investors the example of what will happen to the UK’s currency, if Brexit deal will be made in recent weeks, Bloomberg reports.

Sterling may break through $1,35 level within two days, if the UK and EU will agree on conditions of their divorce, experts think.

On Thursday pound gained 2% and closed at $1,30 after Times announced that banks of the country may get access to European market. On Monday currency grew by 0,7% after news that the UK might stay in custom union of the bloc.

As a result, sterling may get back about half of its 10% losses since Brexit vote, economists assume.

Positive headlines also made investors to raise their expectations in regards to interest rates hike by Bank of England in November next year, while Morgan Stanley expects that this can happen in February, if agreements is reached earlier.