Sterling Crashes after Interview with Theresa May on Sky News (James Lovick)
The pound has crashed to a two month low on a reality check that Britain will be leaving the EU as well as the now perceived likelihood that Britain will also come out of the single market. UK Prime Minister Theresa May gave a rare interview with Sky News yesterday and made clear that Britain was absolutely coming out of the EU and that there would not be a mix of some parts remaining part of the EU and others not. The strong comments point to what has been dubbed a hard Brexit which the markets react badly to.
GBP EUR has slipped below 1.15 this afternoon which takes the pair down to a 2 month low. Politics is clearly the main driving force for the price of sterling and this is set to continue as we approach the end of March. Those clients needing to buy Euros would be wise to get in touch sooner rather than later as the pound ,may have a good way further to fall.
The Supreme Court Ruling which may come as soon as this week is also likely to create fireworks and the outcome will create new direction for the pound.
An estimate of UK GDP will be provided later in the week which may create some added volatility for the pound. However GDP has fared well over the last 6 months and Britain has actually performed extremely well in the G7 so much to say it is now the fastest growing economy. As such a steady figure is likely. Politics will continue to be the main driver for the pound in this unchartered period.
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