After a volatile start to the week, which was surprising considering the lack of fundamental data, the Great British Pound has continued to take a tumble following PM Theresa May’s speech at the weekend.
Sterling has slumped to the lowest level since October this morning, as investors once again speculate that the country is heading for a hard Brexit. May clarified that ‘Brexit means Brexit’, she is not interested in keeping ‘bits’ of European Union Membership. GBP/EUR experienced the heaviest losses, slumping towards the 1.14 mark. Investors are fearful that if the UK loses access to the single market, the economy will experience significant difficulties.
The UK’s fundamental data has been extremely resilient, but the majority of the focus is cast towards politician’s feedback and let’s not forget we have yet to hear the outcome of the Government’s Supreme Court case in relation to the execution of Article 50. The expectation is that they will release their verdict this month, which will ultimately determine whether May can start the ball rolling by her March target, as opposed to requiring parliamentary approval.