Sterling to Record 3 Years High If Brexit Delayed

By: Taarek Refaat

LONDON, Mar.13 (SEE)- Leading global investment bank Goldman Sachs announced on Wednesday that the postponement of the Brexit would enable the British sterling to record 3 years high.

The bank said that the delay of the Uk's exit from the European Union (EU) would open the door for closer relations between Britain and the union, resulting in a rise of 80 pence per euro, a level not recorded by the British currency since the UK's exit referendum.

The sterling was up 0.7 percent against the euro, with the union's currency falling to £ 0.8576.

Goldman Sachs added that transit to extend the deadline for the implementation of the Brexit will push towards positive economic outcomes.

“We remain of the view that the pound is due for a deal pidend once the U.K. moves into the lengthy transition period on its way out of the EU,” a Goldman strategist George Cole said, adding that data suggest that the euro-pound still sets a Brexit-related pidend of around 5 percent.

A no-deal Brexit scenario could comprehend to the depreciation of the sterling, making its value equivalent to the euro.

Prime Minister Theresa May performs tremendous efforts to secure a Brexit deal, however, the British parliament rejected it yesterday. The parliament is due to vote on the implementation of the Brexit without an agreement later in the day after a strong defeat for the Prime Minister over the rejection of the amended settlement.

If the proposal is rejected without a deal, the drafters will vote tomorrow on a proposal that would postpone the date of the Brexit scheduled for March 29.