Pound could hit parity with the US dollar some forecasters suggest

This morning's Telegraph (of all papers!) on their live business blog are carrying reports from a Reuter's interview with the chief economist of Allianz bank, Mohamed A. El-Erian, who thinks that unless we get a free trade agreement with the EU soon the pound call get close to parity with the dollar. 

This is also echoed by Former UBS chief economist George Magnus (HERE).

He makes the valid point that the pound dropped from $1.71 in 2014 to about $1.41 in mid 2016 (before the referendum) but during this time yet our trade deficit and current account has got steadily worse, reaching a record deficit in 2016. So a cheap pound is not necessarily a good thing for exports.

Incidentally, the pound is still below $1.30 this morning.