The British pound have dropped to its lowest levels since 1985 in yesterday’s trade after investors were hyped with speculations that the British Prime Minister, Theresa May, will lay down her cards for a so-called “hard Brexit” from the EU to the European lawmakers tomorrow.
The British sterling touched as low as under $1.20 U.S. per pound in yesterday’s session, which is the lowest level since 1985. While the British pound roughly traded at 1.59 in Canadian dollars.
The British media says that the British Prime Minister will signal a willingness to take the U.K out of the EU’s single market goods and services in order to gain control in the immigration department. This prospect alarms a lot of the financial services sector in Britain which greatly relies on EU access.
Since the U.K.’s Vote to Exit the European union, Speculations has evolved that the government would fail to stand up to its decision or would water down the dissolution of many economic liberties such as free trade within Europe would retain at the very least.
Philip Hammond, May’s Chancellor of the Exchequer, stands as a balance in the scale as he views this economic issue from a different perspective. He is also acts like a finance minister, and said earlier this week that a Britain free of the EU could become an actual tax haven, that could attract many European businesses that would relocate because of the much convenient and a lower corporate tax result.