Reuters, New York :
European shares rose yesterday, following Wall Street’s late surge, while sterling was the biggest loser on major currency markets ahead of the formal triggering of Britain’s exit process from the European Union later in the day.
Prime Minister Theresa May will notify EU Council President Donald Tusk in a letter that Britain really is quitting the bloc it joined in 1973, pitching the United Kingdom into the unknown and triggering years of uncertain negotiations.
The start of the formal Brexit process comes a day after the Scottish Parliament backed a bid to hold a second independence referendum that would break up the UK, adding another layer of uncertainty for investors to navigate.
“Details are everything now. We could be in for a rough ride today as currency traders react to the contents of the letter being delivered to Brussels and the language May uses in parliament,” said Neil Wilson, senior market analyst at ETX Capital.
“A truly hard Brexit has not been priced into sterling. We could see it move lower still if negotiations take a sour turn,” he said.
Sterling hit a one-week low of $1.2378 GBP and was last trading down 0.5% against the dollar at $1.2390.
Elsewhere in currencies, the euro was down a quarter of one percent at $1.0785 EUR and the dollar was flat against the yen at 111.05 yen JPY.
European shares rose yesterday, following Wall Street’s late surge, while sterling was the biggest loser on major currency markets ahead of the formal triggering of Britain’s exit process from the European Union later in the day.
Prime Minister Theresa May will notify EU Council President Donald Tusk in a letter that Britain really is quitting the bloc it joined in 1973, pitching the United Kingdom into the unknown and triggering years of uncertain negotiations.
The start of the formal Brexit process comes a day after the Scottish Parliament backed a bid to hold a second independence referendum that would break up the UK, adding another layer of uncertainty for investors to navigate.
“Details are everything now. We could be in for a rough ride today as currency traders react to the contents of the letter being delivered to Brussels and the language May uses in parliament,” said Neil Wilson, senior market analyst at ETX Capital.
“A truly hard Brexit has not been priced into sterling. We could see it move lower still if negotiations take a sour turn,” he said.
Sterling hit a one-week low of $1.2378 GBP and was last trading down 0.5% against the dollar at $1.2390.
Elsewhere in currencies, the euro was down a quarter of one percent at $1.0785 EUR and the dollar was flat against the yen at 111.05 yen JPY.
