Prime Minister Theresa May outlined her plan for a Britain outside the European Union in a speech on Tuesday, saying that it would not be part of the single market but would endeavour to work with European States in many policy areas.

The pound sunk to three-month lows in anticipation of the speech, but steadied once the Prime Minister began speaking. Addressing an audience at Lancaster House in London, May made it clear for the first time that she would be negotiating for a ‘Hard Brexit’.

“I want to be clear: What I am proposing cannot mean membership of the single market,” May said, but before continuing to state that she would like to create a new deal with Europe:

“This agreement should allow for the freest possible trade in goods and services between Britain and the EU’s member states. It should give British companies the maximum freedom to trade with and operate within European markets, and let European businesses do the same in Britain.”

At the end of the speech, she warned Europe that it would be worse off than Britain if not trade deal was reached.

Sterling retreated again on Wednesday, and is currently down 0.94 percent against the dollar and 0.61 percent against the euro.