TD Research discusses GBP outlook and sees GBP/USD making a stable floor around 1.28 in the near-term.
"A deal remains our baseline scenario. A No-Deal outcome is still possible, however. With the 31 December deadline approaching, chances of an accident have likely risen, though sit around 20%." TD notes.
"Brexit remains a major risk, but we now see this more in tactical than strategic terms. The range of outcomes has narrowed and the “Deal” on the table represents a very hard Brexit...At current levels, most of Brexit’s damage may already be priced, but the situation remains highly fluid, and uncertainty is acute," TD adds.