TradingOne week after the UK Election: Scenarios for sterling and Brexit

• Theresa May has pushed forward with EU negotiations despite it being widely expected that she will not last a full term in office
• The pound could fall even lower in the short-term, but we think that the downside is contained
• A ‘softer’ Brexit may be positive for sterling
• In the event that Britain leaves the EU without a deal, sterling could fall below 1.20 versus the dollar

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