PIMCO's Amey says Britain to avoid disorderly Brexit, long sterling
Reuters
Published Oct 08, 2018 07:38AM ET
PIMCO's Amey says Britain to avoid disorderly Brexit, long sterling
LONDON (Reuters) - The pound can strengthen 5 to 10 percent from current levels because Britain and the European Union are likely to reach an agreement to avert a disorderly Brexit, PIMCO's head of sterling portfolios said on Monday.
Mike Amey said he held a moderately long position on sterling versus the euro (EURGBP=D3), predicting a gradual rise, because the foreign exchange market was "too pessimistic" about the prospect for a disruptive Brexit.
"Our base case is there will be some sort of co-operative solution," he told Reuters in a telephone interview. "We think both sides can achieve their political ambitions without creating a disruptive economic environment."
However, Amey warned that risks remained and the pound would fall sharply - to as low as $1.15 GBP=D3 - if talks between London and Brussels deteriorated and the UK crashed out without a trade deal.
Pacific Investment Management Co (PIMCO) manages $1.71 trillion in assets globally.
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Written By: Reuters
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