March 1, 2018 / 1:46 PM / a year ago

Pictet Wealth CIO says sterling could slump to $1.20 if no Brexit deal

LONDON, March 1 (Reuters) - Sterling could slump to $1.20 and hit parity with the euro if Britain fails to secure itself a deal with the European Union when departing the bloc, the chief investment officer of Pictet Wealth Management said on Thursday.

"If there is no deal it (sterling) can really underperform. $1.20 versus the dollar and parity versus the euro," Cesar Perez Ruiz told journalists. The pound is currently trading at $1.3744 and 88.56 pence per euro.

The chairman of European Union leaders, Donald Tusk, will meet May in London on Thursday, a day after the bloc's Brexit negotiator weakened sterling by issuing another warning to Britain, which is due to leave the bloc in March 2019.

Pictet Wealth manages 200 billion Swiss francs ($211 billion) in assets. ($1 = 0.9463 Swiss francs) (Reporting by Marc Jones Writing by Tommy Wilkes)

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