The UK currency fell to its lowest level since October last year as markets react to a fresh round of Brexit-related announcements.
Editor’s Remarks: Were it not for a brief flash crash on October 7th, yesterday’s plunge below the $1.20 GBP/USD mark would have seen it hit depths not seen since 1985. The pound has seen a deflating few months since the EU referendum result kicked off a downward spiral, and the latest dip is thought to represent bolstering market expectations of a ‘hard’ Brexit. In a speech today, Prime Minister Theresa May is expected to make concrete her government’s willingness to concede some degree of single market access if it means successfully repatriating control over migration. This did not add much to analysts’ knowledge, though, explaining the halt in the pound’s fall into European trading hours, but the UK’s Supreme Court decision and subsequent negotiations in Brussels are likely to burden the currency further with increased volatility.
What to watch: GBP/USD, Theresa May, Philip Hammond, UK Supreme Court