Pound could collapse by the end of the year, says GERMANY'S Deutsche Bank
DEUTSCHE BANK has forecast the pound could collapse by another 15 per cent by 2017.
Deutsche Bank predicts the Pound will keep on FALLING
Chiefs at the German bank are insisting the process of Britain leaving the European Union (EU) will damage the UK growth.
In one of the most pessimistic outlooks for sterling yet among the world's big banks, the’s crisis-hit lender said the sterling currency could tumble to as low as $1.06 against the dollar by the end of this year.
They also said it could fall towards parity with the euro, which would represent a fall of around 15 percent against both the dollar and euro.
Deutsche Bank have warned the pound could collapse by 15 per cent
We do not see sterling (currently) fully pricing a hard Brexit outcome
In its latest special 45-page report over Britain’s Brexit, it read: "We do not see sterling (currently) fully pricing a hard Brexit outcome.
“Combined with limited adjustment in the UK's current account deficit and slowing growth, we see further downside, and forecast $1.06 in by year-end.”
It comes after George Saravelos, the bank’s global co-head of foreign exchange, said the pound could slip by 16 per cent against the dollar to $1.05 because of the “incredible complicated” Brexit.
The bank gave a pessimistic reflection after Brexit
The pound is set to tumble after Brexit
Sterling was trading around $1.25 against the dollar on Wednesday.
While, the euro was changing hands at 86.30 pence, making the pound worth around 1.1585 euros.