London (CNN Business) The British pound could plunge by 10% or more if the United Kingdom does not finalize a trade deal with the European Union this weekend. The fact that the pound hasn't yet "capitulated" against the dollar suggests there's still "pent-up hope" that a deal will be secured, he added. The pound had been trading close to $1.35 earlier this month when a deal between the United Kingdom and its biggest export market looked more likely. Analysts have warned that the currency could quickly plunge below $1.20 if it becomes clear that a deal is no longer possible. The pound shed 0.6% on Friday to trade just above $1.32 as hopes for a deal took a knock.

Source: CNN December 11, 2020 12:00 UTC