The Sterling has slumped this morning. The fall in price can be equated to prime minister Theresa May’s statement on Sunday, that the United Kingdom will be exiting the single market. Once again fuelling fears of a ‘hard brexit’, May stated that her primary concern was to negotiate the best deal for the UK, rather than keeping shards of the relationship intact.
Worries that May is choosing immigration control over the single market are rampant. The pound dropped to levels below $1.22 in overnight trading following the announcement. Investors are selling-off their positions in anticipation of the UK leaving the single market. The pound is also struggling against the Euro, dropping to €1.15.
This month, the UK Supreme court will rule whether triggering article 50 is in the hands of the Parliament rather than May. The ruling could postpone the March deadline May has proposed. A court ruling that states that legislation is needed to formally start the negotiation would indicate a ‘softer brexit’. The polarising affect that Brexit has had on the nation could be cushioned with a softer approach to the exit negotiations, which in turn help relieve the pound of this downward trend.
The prime minister said that she would reveal her strategies for Brexit in the coming weeks. To broaden the scope of the UK’s political agenda, May will present a transformative plan to change the way the UK think about mental health today.