A no-deal exit by the United Kingdom from the European Union would push sterling to its lowest against the euro since the global financial crisis a decade ago, UBS Wealth Management said.

UBS said the UK currency would hit 97 pence, just short of parity against the euro. That would be its weakest since December 2008. It also predicted it would fall to $1.15, its lowest since a flash crash in October 2016.

"Investors should not be complacent about the threat of a no-deal exit," said Dean Turner, UK economist at UBS Wealth Management.

In turn, a decision to remain in the bloc would likely cause a swift rebound in sterling. Turner said he believes the pound is undervalued relative to its purchasing power parity level of around $1.58.