Pound drops ahead of Theresa May's expected 'hard Brexit' speech

The pound dropped to its lowest level for three months this morning ahead of a speech by prime minister Theresa May that is expected to signal a "hard Brexit".

Sterling fell below $1.20 before edging back up on Monday and dropped to a two-month low against the Euro to €1.13 in Asian trading.

Analysts attributed the fall to reports that May’s speech on 17 January would signal a "hard Brexit", which would mean the UK would leave the EU single market as part of its withdrawal from the union. 

Several Sunday newspapers said May would outline a "hard Brexit" approach, while the prime minister’s spokesman described the reports as "speculation".

The pound has fallen by about 20% against the dollar since the UK voted to leave the EU last June.

In an interview with The Times, US president-elect Donald Trump hailed the UK’s exit from the EU and said the fall in pound sterling was "great" for British business. 

Subscribe today for just $116 a year

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.com , plus get exclusive discounts to Campaign events

Become a subscriber


The latest work, news, advice, comment and analysis, sent to you every day

register free