April 1, 2019 / 12:47 PM / 18 days ago

Brexit: Deutsche Bank ups likelihood of no-deal, turns bearish on sterling

FILE PHOTO: The logo of Deutsche Bank is seen in front of one of the bank's office buildings in Frankfurt, Germany, October 27, 2016. REUTERS/Kai Pfaffenbach/File Photo

LONDON (Reuters) - Deutsche Bank said on Monday it has increased the likelihood of Britain crashing out of the European Union without a deal on April 12 and has turned tactically bearish on the pound as chaos over the outcome of the prolonged process deepened.

The bank said it has raised its estimate for the chances of a no-deal Brexit to 25 percent from 20 percent and given the increasingly high probability of no deal, it is targeting an exchange rate of 90 pence per euro.

It pegged the chances of Parliament failing to reach consensus in indicative votes later on Monday and the withdrawal agreement being passed by the April 12 deadline at 15 percent and kept its other Brexit forecasts unchanged.

For a graphic on No-deal Brexit probabilities, see - tmsnrt.rs/2Ua88Pc

For an interactive chart on this, click on: tmsnrt.rs/2Ua88yG

For a graphic on No-deal Brexit probabilities, see - tmsnrt.rs/2VlgLGT

Reporting by Josephine Mason and Helen Reid, Editing by Helen Reid

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