Pound drops after May’s Brexit speech
The pound has dropped after UK PM Theresa May Brexit speech.
Earlier today UK prime minister’s Theresa May, pictured above, outlined the UK’s approach to Brexit ahead of the next round of negotiations.
In her speech May called for a two-year transition period after the UK officially leaves the EU in March 2019.
Despite May’s bid to bring calm to the troubled negotiations, at around 3.15pm today, the pound fell to a low for the day against both the dollar and euro.
As investors reacted to May’s speech sterling was down 0.6% versus the US dollar at 1.350, having been 0.2% lower at the start of the UK PM’s address in Florence.
Against the euro, the pound extended its losses to trade 0.8% lower at 1.127.
The drop comes after the UK currency neared its 15-month high last week, amid speculation that the Bank of England is likely to raise interest rates this autumn.