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Sterling hit by fears over UK leaving the single market

Sterling fell against the dollar yesterday to its lowest level since October after Prime Minister Theresa May dismissed the idea of the UK retaining bits of its European Union membership, indicating a ‘hard Brexit’ approach to leaving the EU.

In an interview with Sky News on Sunday morning, Mrs May said;"We're leaving. We're coming out. We're not going to be a member of the EU any longer”

The PM also added she wanted ‘the best possible deal’ for the UK and that she doesn’t ‘accept the terms hard and soft Brexit’

Traders with one eye on the 31st March date set by the Prime Minister for the triggering of Article 50, are hungry for any indications of the government’s strategy for Brexit and have reacted to the interview causing the value of the pound to fall to a two-month low against major currencies.

The pound fell sharply in the aftermath of the EU referendum result in June and while the uncertainty over how the UK will leave the EU remains, the price of Sterling is expected to remain volatile.

In Monday’s trading, the pound was down 1.1% against the dollar by mid-afternoon and was 1.23% weaker against the neighbouring Euro.

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© 2017 Guardian Wealth Management