Pound falls as City faces up to hard Brexit – business live

Discussion in 'Market News' started by Lily, Oct 3, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Sterling hits seven-week low after Theresa May revealed she plans to trigger article 50 by March 2017

    8.09am BST

    The pound has also hit a seven-week low against the euro, at 87.18p. That’s a drop of 0.6% this morning.

    7.58am BST

    Brexit worries have pushed the pound back towards the 31-year lows plumbed in the aftermath of June’s referendum.

    Sterling has lost over half a cent in early trading, dropping to £1.2902 against the US dollar. That’s the lowest level in seven weeks.

    Teresa May announced on Sunday that U.K.’s divorce from the EU will start within 6-months. Article 50, the official notification to Britain’s partners will be triggered before the end of March 2017, which gives another two years to agree on the terms of the most complicated divorce in recent history.

    The pound’s imminent reaction was a drop of 0.5% against the dollar in early Asian trading session, nothing compared to the 11% freefall after U.K.’s vote to leave the EU on June 23. Now with the timeline being set, the negotiation of the terms will be a key driver for sterling going forward, but I expect it to be rough ride in the next few months.

    7.34am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Just three months to go until we consign 2016 to the history books, and investors have lots to worry about.

    Related: May on collision course with Conservative backbenchers over hard Brexit

    Related: German business leaders offer support to Deutsche Bank

    Consensus forecasts suggest that manufacturing activity in the UK remained in expansion territory in September, slower than August.

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