The firm says that their view remains for some deal to be struck between the UK and the EU by early next month
In a note to its clients, Goldman Sachs says that "our core view remains that a 'thin' zero-tariff/zero-quota trade agreement will likely be struck by early November, and subsequently ratified by the end of December".
But adds that the risk of a breakdown in negotiations cannot be ruled out, noting that "we continue to think the perceived possibility of a 'no-deal' outcome will persist beyond the next European Council meeting in mid-October".
Over the past week or so, the pound has proven rather resilient as buyers are still clinging on to Brexit hopes but there will be added volatility risk over the next few weeks.
Cable sits near unchanged so far today at 1.2935, with topside gains still more limited closer to 1.3000 while sellers finding it tough to gather enough momentum to wrestle back near-term control on a push towards 1.2800.
