One of Deutsche Bank's most senior staff, George Saravelos has claimed that worries over the length of the Brexit negotiations will cause the British pound to fall.
Mr Saravelos added speaking to Bloomberg TV on Tuesday, the bank sees sterling falling as low as 1.05 against the dollar.
Deutsche's global co-head of FX research, said the complicated nature of Brexit is a reason for these concerns over the currency. This would be close to the lowest level set in 1985.
George Saravelos admitted that they predict the pound will slump as a result of Brexit
“The UK is one market where we have stronger views in terms of where currencies are going.
“Even though intentions are quite positive on both sides, we're very concerned about the lack of time to complete a deal in two years, and we worry that negotiations will get stuck around this issue of the payment which the UK has to make to leave the EU, and things will stall quite quickly.
“That's one of the reasons we're so negative on the pound.”
Fears have been raised over the length of time a Brexit deal could take to be negotiated between the European Union and the UK.
Theresa May said if Britain did not get a good deal from the EU the UK would leave without one
We're very concerned about the lack of time to complete a deal in two years
Theresa May confirmed in her strategy, that if Britain was not given a good deal from the European Union, then it would sever ties without a deal.
Regulatory news organisation MLEX reported that European lawyers have also raised concerns over how long a Brexit deal could take to negotiate.
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It is believed that an agreement within two years is seen as “difficult, if not impossible,” as EU member states and national parliaments have a right to veto.
If the UK did leave the European Union without a trade agreement, immediate tariffs would be imposed on good and cross-border agreements.
Government Loses Brexit Vote Appeal Tue, January 24, 2017
Britain's most senior judges ruled that Prime Minister Theresa May does not have the power to trigger the formal process Article 50 for the UK's exit from the European Union without Parliament having a say.
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Issued by the Supreme Court of (top row, from the left) Lord Neuberger, Lord Mance, Lord Kerr, Lord Sumption, (bottom row, from the left) Lady Hale, Lord Clarke, Lord Wilson and Lord Hodge, who agreed with the majority decision that the Government could not trigger Article 50 without Parliamentary approval.
Also ideas of a transitional deal being implemented for longer than two years period have been slammed, as it would undermine the length of time designed for a country to end EU membership.
Mr Saravelos finished by predicting how low the British Pound will fall and before blaming politics behind the negative trend.
He said: “We're looking for a move below $1.10, to $1.08 or $1.05, and the drivers are — on the one hand they're political — as I mentioned the market will worry that we'll get a 'cliff Brexit' and that we won't have enough time to reach this incredibly complicated agreement within two years.”
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