GBP: Could Boris’ Brexit Love Song hit a bum note for transition deal odds? - ING

Foreign Secretary Boris Johnson today kicks off a series of speeches by the UK Cabinet outlining its Brexit vision – the risk is that he may muddy the landscape further and reduce the perceived odds of a Brexit transition deal being agreed by end-March, according to Viraj Patel, Research Analyst at ING.

Key Quotes

“We note that short-term risks around key Brexit events have tended to be asymmetric – with a propensity for GBP to rebound sharply. Risk-reward favours staying long GBP/USD in a weak $ environment (1Q target 1.45).”