ING sees 40% chance of an election, 25% chance of a 'no-deal' Brexit

ING, one of Europe's largest banks, said on Tuesday it saw a 25 percent chance of a no-deal Brexit and a 40 percent chance of an election in Britain.

"Deal or no-deal a general election looks increasingly likely," ING economist James Smith said. "There's a 40 percent probability of a general election coupled with an Article 50 extension."

The bank said sterling could hit 95 pence per euro this quarter.