Sterling Hit Its Lows Against a basket of currencies since May’s Brexit Speech
January, 17 2017
The British pound slumped to a three-month low on Tuesday influenced by the speech of Prime Minister Theresa May that would change the European Union single market and limit its access to the single market. The pound reached the lowest 1.1983 against the U.S. dollars while it hit a ten-week low of 88.53 against Euro both on Monday. Same with yen when it reached an eight-week low at 136.81 on Monday.
The Japanese yen is benefitting from this situation while the concerns on U.S. President-elect Donald Trump that attenuates the associated risk sentiment. The market is still uncertain with Trump’s economic policies making them cautious on their move whether to take short or long before his inauguration at the end of the week. On the other hand, Britain will find means to control the border to prevent ‘hard brexit’.
