What will happen to the pound if there is no agreement to leave the EU?
Britain's withdrawal from the EU without agreement will directly aggravate the decline of the pound against the dollar, mainly because Britain's withdrawal from the EU will have a certain impact on its own economy. In fact, Britain can still get a lot of policy dividends because of its previous single market and customs union in the European Union, which was free of tariffs and border inspection and mutual recognition of standards. However, once there is no agreement to leave the EU, the re-signed terms will be unfavorable to the entire British economy.
The most direct impact of Britain's withdrawal from the EU without agreement is that the price of goods from the EU will increase, which is undoubtedly the depreciation of the purchasing power of the pound for local British consumers, so the pound will begin to depreciate. But for Britain, when the window of the EU is temporarily closed, the door to the world may open soon. Therefore, in the future, we do not rule out that Britain will regain rapid economic growth because of Britain's withdrawal from the EU.
At that time, the pound will stop depreciating and appreciate instead.