Twitter reacts as pound falls sharply amid Brexit turmoil


Sterling has been falling ever since a series of resignations hit Theresa May’s government today. Pound has now has fallen 1.6 per cent to $1.2785 against the dollar and is facing its worst one-day drop since June 2017.

Viraj Patel at ING tweeted that leadership crisis could see pound in the range of $1.24-$1.27 versus the US dollar. In case of a no-deal Brexit scenario by March 2019, sterling could slip to a low of $1.20.

According to BBC business editor Simon Jack: “The odds of a general election have just gone up and that means the possibility of a Corbyn government must have increased as well.

“Markets don’t like the prospect of that because of Labour’s intention to raise taxes on companies and nationalise large sections of the economy.”