The British pound opened down approximately 1.5% against the dollar in early trading, Sunday. At it’s lowest, the pound was trading at 1.1995 against the greenback, before gaining some ground in the hours following the opening of the Australian currency markets.
The precipitous fall in the pound was spurred by press reports that suggest Theresa May is looking to leave the EU single market and customs union - a major point of contention in the Brexit negotiations - in order to regain full control over UK immigration policy.
The British MP is scheduled to give a speech at London’s Lancaster House, on Tuesday, in which she will make the case for a clean breakaway from the European Union and a more united Britain.
“So the country is coming together. Now we need to put an end to the division and the language associated with it – Leaver and Remainer and all the accompanying insults – and unite to make a success of Brexit and build a truly Global Britain,” May is expected to say on Tuesday, according to a Sunday Telegraph report.
Many financial firms based in the UK have made it clear they plan to move to Ireland and the EU if Brexit negotiation fail to preserve single market and passporting rights for British firms.
LMAX, a London-based and FCA-regulated FX marketplace, issued a statement in October, 2016, saying the firm plans to leave the UK in 2017 if Brexit negotiations break down:
“LMAX Exchange will begin regulatory filings in Ireland in January 2017, if no UK Government assurances are received.”Statements by firms like LMAX regarding the repercussions of a “full Brexit” are very much at odds with some parts of the MP’s planned speech on Tuesday, “Business isn’t calling to reverse the result, but planning to make a success of it,” May will say.