get Copyright: get

UBS Global Wealth Management has published a new brief looking at what it expects for Brexit, a possible no-deal, and how it will affect the Sterling.

“We expect they will be compelled to seek a longer extension to Article 50," said Dean Turner, UK Economist at UBS Global Wealth Management.

"Flexibility has been retained for now, but the deadlines and the choices to be made by MPs have become more challenging. Each possible path Parliament could choose is fraught with pitfalls.”

UBS thinks it will be quite difficult for Theresa May to get the Withdrawal Agreement passed through Parliament, and the possibility of an "accidental no-deal exit remains real".

“In our view, it is prudent to tread cautiously while the news is fast flowing," said Mr Turner.

"We do not advocate taking directional views on the currency, but we remain alert to entry and exit opportunities if volatility persists.

"For the time being, the most sensible approach seems to be to hedge sterling's downside risks.”