A Mug’s Game

“Our base case for sterling remains unchanged: that some type of a compromise on state aid and fisheries will enable a barebones free trade agreement covering goods, and that the pound will enjoy a moderate 3-5% rally as a result. Assigning a percentage probability to the chance of talks collapsing is a mug’s game: everyone knows this remains a realistic probability.”

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A euro devaluation against sterling is on the cards, HiFX reports

LONDON | As the markets are rocked by France’s presidential elections and attention continues to linger on Spain, where official figures announced that it is once again in recession, currency specialists HiFX reported on Monday a 175% increase in euro sales. The move could benefit euro country members’ exports to the United Kingdom but it would hurt the British economy, as 40% of foreign sales go to the European Monetary…