The British pound fell to new lows on Wednesday, as fears of a ‘hard’ Brexit continue to bite.
The pound fell below $1.27 for the first time since June 1985, after several consecutive days of decline in the wake of Prime Minister Theresa May’s March 2017 deadline for leaving the European Union.
During her speech May made clear her intentions to prioritise curbing immigration over free trade as the UK begins its negotiations with the EU bloc, prompting investor panic and pushing sterling down against the Euro.
Carlo Alberto De Casa, chief analyst at online broker ActivTrades, told the BBC:
“As far as the pound goes, this week is a write off. It is difficult to see a quick recovery in prices after this morning’s lows against the dollar and euro – and it could go lower.
“Investors are still analysing what could happen after March when the Article 50 will be triggered and this fear is dominating the currency market.”
The Pound is currently down 0.07 percent against the Euro and 0.02 percent against the Dollar. The FTSE 100 is down 23.28 points, after hitting record highs on Tuesday as a weaker pound sent international companies’ shares higher (1344GMT).
05/10/2016
