August 14, 2019 / 1:28 PM / 4 days ago

ING bank sees pound falling to parity with euro in no-deal Brexit scenario

A British Pound Sterling note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration

LONDON (Reuters) - ING, one of Europe’s banks, said a no-deal Brexit would send the pound down to parity with the euro and push it down to $1.10 against the U.S. dollar.

“We think the most likely scenario is one where parliament back a no-confidence motion and force an Article 50 extension at some point in October, setting the scene for a general election in late November or December,” ING said in a note to clients.

“We’d put a 40% probability on a general election taking place, coupled with a further Brexit delay.”

A revocation of Article 50 would send sterling up to $1.45, ING said. Against the dollar GBP=D3, the pound on Wednesday was steady at $1.2059 and against the euro EURGBP=D3 it was unchanged at 92.67 pence.

Reporting by Guy Faulconbridge; editing by Stephen Addison

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