UK: Pound index drops beyond post-Brexit low on May’s speech

October 7, 2016

Brexit was not such a harmless idea, in fact. The Britons had not yet felt the benefits out of the EU, but problems appear one after another. For example, the pound index drops beyond post-Brexit low on May’s speech, the national currency is very sensitive to problems in foreign policy.

A gauge of the pound against seven major peers fell below post-Brexit levels on Monday after British Prime Minister Theresa May said she’ll begin the U.K.’s process of withdrawal from the European Union in the first quarter of 2017. Such a serious divorce will create more problems than benefits, say financial observers.

The Bloomberg British Pound Index dropped 0.9 percent, reaching the weakest level on a closing basis since the data started being compiled in 2004. The gauge is down about 17 percent this year.