The firm's currency strategist, Lee Hardman, says that there is little optimism among market participants on the prospect of a cross-party Brexit deal arguing that the pound could rally as much as 1-2% if an agreement is reached.

Adding that the currency could strengthen by a further 2-4% if a compromise deal is reached and it is passed through parliament. However, Hardman notes that the firm is currently neutral on the pound as the market has already priced in a softer Brexit. He says that "to build on gains from earlier this year, the pound would need to see a decisive breakthrough in Brexit talks".