The pound was down 1.13% against the U.S. and 0.77% against the Euro at 21:15 GMT, as concerns regarding the nature of Britain’s exit from the European Union push the currency to a three-month-low.
Beginning the trading week down almost 2% against the dollar in early-hour trading, the British pound remained a vivid illustration of investors’ concerns about the nature of the British exit from the E.U. as many consider a ‘hard-Brexit’ the path of increasing likelihood to be assumed by the British government.
Despite a general trend of decline since the U.K.’s decision to leave the E.U., the pound had experienced minor increases in its value in the latter trading sessions of 2016, as signals from the British government increasingly hinted towards favouring a ‘soft-Brexit’, of which was interpreted by many as a continuation of the freedom-of-movement initiative, in return for full access to the single-market.
However, recently Theresa May signalled with increasing verve, her government is to be assuming the path of greater economic restriction from the Union, in return for enhanced control of immigration.
Such a notion propelled the currency down vehemently, with notable declines in value against the U.S. dollar, down 1.13%, the Japanese yen, down 1.50%, and the Euro, down 0.76%, respectively, at 21:25 GMT.
With Teresa May expected to provide some elucidation regarding the governments otherwise nebulous Brexit-strategy in a press-conference tomorrow, investors are maintaining their bearish speculation, with the general notion one of a continuation in the fall of the currency.
Chart from: https://www.dailyfx.com/gbp-usd
Showing daily fluctuations in the value of the British pound against the U.S. dollar. The significant drop present one-third of the way across the chart represents the wake of the results from the Brexit referendum hosted on June 23 2016.