Because the markets think a hard brexit will be bad for the UK economy.
Every time there is an indication of a hard brexit the pound dollar rate goes down. There was continuous decline from Jan 2016 to June 2016 as the chance of Brexit got larger. Then a big drop when the result came in. A slight recovery when a softer brexit became a possibility, then a drop during the Conservative party conference with a hard brexit message. A week ago May gave an interview with strong indications of a hard brexit and yet another 1 point drop. Over the weekend several people indicated a hard end, even Hammond who was seen a moderate came out with some tough talk. May will give a speech on Tues 17th, and we will probably see another fall.
Some pundits are predicting it could fall to $1.10 in the next few weeks.
Submitted January 17, 2017 at 05:52AM by gambit270 http://ift.tt/2jF9pMz
