(Reuters) – Odds of a damaging no-deal Brexit are “meaningfully lower” than the market is implying and for investors willing to look through short-term volatility, current sterling levels are attractive, investment bank Goldman Sachs (NYSE:) said.
The bank said in a note late on Friday the market was pricing 40%-45% odds of Britain ending its post-Brexit transition period without reaching a free-trade agreement with the European Union.
While those odds could rise further, Goldman Sachs said the UK government was aware how damaging a no-deal outcome would be to the economy.
“For investors willing to look through some near-term volatility, current levels for sterling longs now look attractive, in our view,” it added.
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