The pound is diving on news that Prime Minister May will make a major announcement

LONDON — The value of the British pound has dropped sharply on Tuesday morning after news that Prime Minister Theresa May will make a statement on the steps of 10 Downing Street on Tuesday morning.

In an unusual move, May will deliver the unexpected statement at 11:15 (BST), amid rumours that she could be about to announce something major. There is no word on what the subject of the announcement will be, but rumours include that she will call a snap general election.

Prior to the news, the pound had been marginally in positive territory for the day but fell sharply as the statement was confirmed. By just before 10.20 a.m. BST (5.20 a.m. ET) sterling is lower by around 0.3% on the day to trade at 1.2531 against the dollar.

Here is the chart:

More from Business Insider UK:

NOW WATCH: WATCH! The premiere episode of Henry Blodget’s new markets and economics show

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.