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Brexit

Goldman Sachs says pound levels now attractive

FILE PHOTO: The Goldman Sachs company logo is seen in the company's space on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid/File Photo

(Reuters) - Odds of a damaging no-deal Brexit are “meaningfully lower” than the market is implying and for investors willing to look through short-term volatility, current sterling levels are attractive, investment bank Goldman Sachs said.

The bank said in a note late on Friday the market was pricing 40%-45% odds of Britain ending its post-Brexit transition period without reaching a free-trade agreement with the European Union.

While those odds could rise further, Goldman Sachs said the UK government was aware how damaging a no-deal outcome would be to the economy.

“For investors willing to look through some near-term volatility, current levels for sterling longs now look attractive, in our view,” it added.

Reporting by Sujata Rao; Editing by Maiya Keidan

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