British Pound Swoons on Hard Brexit Fears
- British Pound gaps down over 1.5% vs. majors on “hard Brexit” fears
- UK PM May to opt out of EU single market, seek trade deals elsewhere
- Treasury will seek to reassure investors, talk to banks after May speech
Where is the British Pound heading in the first quarter of 2017? See our forecast here!
The British Pound gapped down over 1.5 percent against its major counterparts at the open of the trading week amid worries that UK Prime Minister Theresa May will outline plans for a “hard Brexit” – meaning a loss of UK access to the EU single market – in a speech on Tuesday.
The Sunday Times newspaper reported that May will come out in favor of the controversial step in an effort to rein in immigration and pursue trade deals with other countries. The UK Treasury said it will seek to reassure investors and intends to talk to banks after the Prime Minister’s speech, according to comments relayed by Bloomberg.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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