Goldman Sachs: Brexit is still on track, stay short GBP

Analysts at Goldman Sachs provide their afterthoughts on the UK Supreme Court Brexit decision and hence, forecast a weaker sterling in the coming months, as cited by eFX.

Key Quotes:

“The UK Supreme Court ruled yesterday that the government cannot trigger Article 50 without an act of parliament, but did not specify what form this legislation must take, allowing for the swift passage of a straightforward bill”

“This ruling keeps the government on track to trigger Article 50 by March, following which we expect with the FX market to price a greater probability of "hard Brexit", driving Sterling down”

“We recommend short GBP in our Top Trade #1 and forecast GBP/$ at 1.20, 1.18 and 1.14 in 3, 6 and 12 months”