FXStreet notes that Brexit-related trade anxiety has resurfaced over the past week. A ‘no-deal’ would slow the UK’s post-lockdown recovery. Economists at ANZ forecast EUR/GBP and GBP/AUD at 0.92 and 1.75 respectively.

“In the absence of an improvement in the trade talks, sterling is likely to remain under pressure.”

“Unless there is a compromise from both sides, the risks to investment and hiring from heightened trade uncertainty will rise. The policy mix is also unsupportive whilst, in a low inflation world, currency depreciation can help to boost competitiveness.” 

“Our forecasts look for EUR/GBP to move towards 0.92 in coming months with GBP/AUD declining towards 1.75. Broad-based GBP weakness has been evident across the board and in the absence of a trade deal, that trend may extend.”