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Bank of America: Investors have no fear of a no-deal Brexit

Data: Investing.com; Chart: Axios Visuals

As the Brexit saga has twisted and turned this year, traders look to have taken their bets on how it will unfold to a new forum: the Euro/British pound currency pair.

The latest: As Prime Minister Boris Johnson has been foiled in his stated attempts to take the U.K. out of the eurozone by any means necessary, traders have pushed the pound to its strongest level in five months against the euro.

Why it matters: Both the pound and euro would be weaker if Britain left the EU with no deal, but the pound would be expected to see more selling, which helped drag the currency to its weakest since 1985 against the dollar last month.

  • The consistent buying of the pound and selling of the euro — a nearly 10% move in the pair — as uncertainty has grown about whether Johnson's plan will succeed indicates "investors have priced-out no-deal Brexit," strategists at Bank of America Merrill Lynch wrote in a recent note to clients.

Go deeper: British pound remains strong despite Brexit drama