Pound tumbles ahead of Theresa May’s Brexit speech

The stirling continues to fall…

The pound has hit its lowest level for more than three months after reports that Britain is set to leave EU single market as part of Brexit plans.

The sterling fell below the $1.20 level but recovered slightly on Monday morning.

It also dropped to a two-month low against the euro, it fell by more than one per cent to about €1.13 in Asian trading.

Analysts have said traders are reacting to reports that Prime Minister Theresa May is set to begin the process of a “hard Brexit”. May is set to give her speech on Tuesday.

The pound has also fallen around 20 per cent against the dollar since the EU referendum.

Laura Lambie, senior investment director at Investec Wealth and Investment, told the BBC that Bank of America could see the pound fall further against the dollar: “We have got a very, very busy week in terms of the reporting season,”

“We’ve got the banks continuing to report, we’ve got Trump’s inauguration at the end of the week, Janet Yellen speaking a couple of times and obviously, we’ve got May’s speech.”

“There’s a lot for the market to digest over the next five days, so I suspect the pound may well be a casualty of that,”

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