This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/theresa-may-brexit-speech-uk-markets-on-edge-pound-sterling-value-drop-investors-dollar-euro-a7530736.html

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
UK markets on edge as investors await Theresa May's Brexit speech UK markets on edge as investors await Theresa May's Brexit speech
(35 minutes later)
The pound and UK stock markets were on edge early Tuesday with investors bracing for Prime Minister Theresa May’s much anticipated Brexit speech. The pound and UK stock markets were on edge early Tuesday with investors bracing for Prime Minister Theresa May’s much anticipated Brexit speech. 
The pound was marginally higher against the dollar, having on Monday hit it lowest level in more than three decades - bar October’s flash crash - while the UK’s bluechip FTSE 100 stock index inched lower. The pound was marginally higher against the dollar, having on Monday hit it lowest level in more than three decades - bar October’s flash crash - while the UK’s bluechip FTSE 100 stock index inched lower.
Mrs May’s speech has already caused big shifts in the pound, following weekend media reports that she could use it to spell out the path of a hard Brexit, announcing that the UK will leave the EU’s single market to regain control of immigration policy.Mrs May’s speech has already caused big shifts in the pound, following weekend media reports that she could use it to spell out the path of a hard Brexit, announcing that the UK will leave the EU’s single market to regain control of immigration policy.
The pound fell as low as $1.1988 on Monday  but recovered slightly to trade above the $1.21 mark on Tuesday morning. However, sterling remains the weakest major currency for the week. The FTSE 100 snapped a 14-session winning streak on Monday and was recently down around 0.4 per cent on the day.The pound fell as low as $1.1988 on Monday  but recovered slightly to trade above the $1.21 mark on Tuesday morning. However, sterling remains the weakest major currency for the week. The FTSE 100 snapped a 14-session winning streak on Monday and was recently down around 0.4 per cent on the day.
Hussein Sayed, chief market strategist at FXTM said the pound’s modest recovery indicates that some of the news is already "priced in".Hussein Sayed, chief market strategist at FXTM said the pound’s modest recovery indicates that some of the news is already "priced in".
  
He said: “The recovery in early Asian trade Tuesday indicates that a lot of the bad news is already priced in, and for the pound to fall substantially lower it requires more than just signs of a Hard Brexit plan.”He said: “The recovery in early Asian trade Tuesday indicates that a lot of the bad news is already priced in, and for the pound to fall substantially lower it requires more than just signs of a Hard Brexit plan.”
Connor Campbell, financial analyst at Spreadex, said: “The fact that the currency knows much of what May is going to say likely helps, as does the increase in clarity this speech will hopefully bring about.” Connor Campbell, financial analyst at Spreadex, added: “The fact that the currency knows much of what May is going to say likely helps, as does the increase in clarity this speech will hopefully bring about.”
Moves in the pound were relatively muted towards the end of 2016, but January has revived investor anxiety about Brexit outcomes and sent fresh jitters through currency markets.Moves in the pound were relatively muted towards the end of 2016, but January has revived investor anxiety about Brexit outcomes and sent fresh jitters through currency markets.
Sterling has fallen about 19 per cent against the dollar since the UK voted to leave the EU in June’s referendum, with declines since the initial aftermath of the vote mainly sparked by concerns that Prime Minister Theresa May plans to quit the EU’s single market in order to regain control of Britain’s borders and laws.Sterling has fallen about 19 per cent against the dollar since the UK voted to leave the EU in June’s referendum, with declines since the initial aftermath of the vote mainly sparked by concerns that Prime Minister Theresa May plans to quit the EU’s single market in order to regain control of Britain’s borders and laws.
Vicky Pryce, chief economics adviser to the Centre for Business and Economics Research, told the BBC’s Today Programme: "It's obvious that the markets believe that a hard Brexit - if that is what we are going to be going towards - is bad news for the economy and they have responded by pushing the pound lower. ​Kathleen Brooks, research director at City Index, said the pound is still "very,very vulnerable".
“It suggest they expect less growth, expect less trade in the future." She said: "By and large the pound is still very, very vulnerable. We've seen that the rallies in the pound, since the EU referendum in June, have been very weak, with the declines very prolonged."