Pound Drops Below $1.20 as May Reported to Seek Hard Brexit
- Buz Investors Pound Drops The pound fell against the dollar, dropping below $1.20 for the first time since October’s flash crash, after reports said U.K. Prime Minister Theresa May will signal plans to quit the European Union’s single market to regain control of Britain’s borders and laws.
- Sterling declined against all of its major peers after the Sunday Times said that May will prepare to withdraw from tariff-free trade with the region in return for the ability to curb immigration and strike commercial deals with other countries.
- The currency has fallen 19 percent against the dollar since the nation opted to leave the EU in June’s referendum,
Pound Drops Sterling declined against all its major peers after the Sunday Times said May will prepare to withdraw from tariff-free trade with the region in return for the ability to curb immigration and strike commercial deals with other countries. The currency has slumped 19 percent against the dollar since the U.K. opted to leave the EU in June’s referendum, with declines since the initial aftermath of the vote mainly sparked by concern May would pursue a so-called hard Brexit.
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“Even if the pound recovers somewhat in London, it seems as though the realities of a hard Brexit are still not fully priced in,” said Sean Callow, senior strategist at Westpac Banking Corp. in Sydney. “It is difficult to make the case for the pound to avoid testing — probably breaking — the ‘flash crash’ lows in coming weeks.”
Sterling fell following her speech at the Conservative Party conference in October, which fanned speculation she was eyeing a clean break with the EU, and dropped to the lowest level since October last week following her first television interview of 2017
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