The pound has fallen to a two month law after the Prime Ministers comments about a “hard Brexit” from the EU. By mid-afternoon, the pound was down 1.1% against the dollar, while against the euro, it was 1.23% lower. Sterling is on the back foot and has been since the Brexit campaign. Speculation on the type of exit has loomed in optimism, however, the PM was clear “We’re leaving. We’re coming out. We’re not going to be a member of the EU any longer.” If Britain does not accept the EU’s four freedoms – free movement of goods, capital, services, and people, there will have to be talks about restricting access to the single market. Ministers talk a lot about guaranteeing “access” to the European single market, but that’s not the same as being a member, of course.
This all means that Britain will need a completely new trading relationship with the EU after its withdrawal, Prime Minister said, as the pound fell on concern she’s planning to pull the country out of the continent’s single market.
Sterling has already dropped by nearly 20 per cent against the dollar since the UK voted to leave the EU, becoming the world’s worst-performing currency. Some forecasters said the pound may reach or fall below parity with the dollar.
The only guarantee is the uncertainty that is looming in the coming months. Britain is far from ready for Brexit.
Pound falls on May’s Brexit comments BBC News
Pound hit by Brexit fears as FTSE 100 touches fresh record high – business live. The Guardian
Pound sterling slumps after Theresa May’s latest Brexit comments. The Independent
Theresa May is failing Brexit Britain. Al Jazeera
