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Pound To Euro Exchange Rate Plummets After Theresa May Sets Brexit Date

It means £1 is currently worth €1.147 or $1.288.

Neil Jones, head of hedge-fund sales at Mizuho Bank in London told Bloomberg: “I know the government line is that they don’t see a need to differentiate between hard and soft Brexit, but the market certainly does.”

The prime minister has announced she will start Brexit “no later than the end of March”.

She told delegates at the Tory conference yesterday that she plans to curb immigration, “stoking speculation the nation is headed toward a so-called hard Brexit – with limited access to the EU’s single market” according to Bloomberg.

The graph above shows the fall against the dollar today, which is approaching the devastating 31-year-low.

The fall suggests that the foreign exchange market “was thinking Brexit would never happen” according to one analyst.

“Despite the fact that there was a referendum, that there was a small majority in favor of leaving, that the prime minister had already said she’d trigger Article 50 at some point in the early part of next year ― the moves may imply that the FX market was thinking this would never happen,” Stuart Bennett of Banco Santander SA told Bloomberg.

“All that uncertainty of when the UK leaves, what its place will be, is just pushed to the forefront again,” he said. 

Article source: http://www.huffingtonpost.co.uk/2016/10/03/pound-to-euro-exchange-rate_n_12308228.html?utm_hp_ref=uk-politics&ir=UK+Politics