Pound Lower on BREXIT

The Pound has started the week sharply lower as markets react to UK Prime Minister Theresa May’s announcement that the UK will trigger Article 50 of the Lisbon Treaty (the formal Brexit negotiation process) by the end of March 2017 putting the UK on course to leave the EU by the summer of 2019. The government is expected to make immigration controls a red line which makes it less likely that the UK will retain free access to the European Single Market. The possible imposition of tariffs on UK exports into Europe and the potential loss of UK financial services European passporting would likely have a negative impact on UK economic growth.

This morning the Pound has fallen to a low of 1.1435 (0.8745) against the Euro, its lowest level since July 2013 and to a low of 1.2845 against the US Dollar, its lowest level since July 2016.