Pound Fails to Shake Off Wounded Image After Week of Flash Crash
- Concerns are growing that U.K. is headed for a hard Brexit
- Sterling extends worst weekly slide since vote to leave EU
Is Bad Brexit Communication Increasing Market Angst?
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The pound resumed its decline as investors waited for clues about the cause of last week’s flash crash and on whether Britain is truly headed for a hard Brexit.
The currency depreciated 4.2 percent last week, its worst performance since June 24, on the news that U.K. Prime Minister Theresa May planned by March to trigger Britain’s two-year withdrawal from the European Union. May will meet with foreign leaders this week in a bid to build understanding for her negotiating position ahead of this month’s EU summit, travelling to Denmark and the Netherlands on Monday.