LONDON — The pound is sliding on Monday after the government announced that it plans to trigger Article 50 on March 29, beginning the formal Brexit process.
Sterling was initially unmoved when the news was announced at around 11.15 a.m. GMT (7.15 a.m. ET), but around 30 minutes later the currency started to drop.
Just before 12.00 p.m. GMT (8.00 a.m. ET) the currency is trading at 1.2384 against the dollar, having been at roughly $US1.2420 prior to the announcement. This represents a drop of around 0.1% from the day’s open.
Here is the chart:
The Article 50 trigger notification will take the form of a letter addressed to Donald Tusk, President of the European Council. The UK government informed Tusk at 10:30 a.m. (GMT) on Monday morning.
“The EU’s permanent representative to the EU informed the office of Donald Tusk that it’s the UK’s intention to trigger Article 50 on March 29,” a spokesperson for Prime Minister Theresa May said.
Sterling’s reaction has been fairly muted, which is perhaps unsurprising, given that it had been widely trailed that Article 50 will be triggered at some point next week.
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