The Pound Sterling fell against the US Dollar as investors worry about the UK government's plans to consider a worst case Brexit scenario. Theresa May's government has increasingly been making preparations for a withdrawal from the European Union without a trade deal in place. The government is set to publish a series of information packets for its citizens and businesses intended to address concerns of a disruption which would come with a hard Brexit. The day for the final withdrawal is March 29, 2019 and there have been numerous delays in finalizing the agreement for Britain's exit. That has led to the strong likelihood of the need for an emergency summit later this year.
As reported at 11:08 am (BST) in London, the GBP/USD was trading at $1.2868, down 0.34% and off the session trough of $1.2850; the pair had touched on a high of $1.2917 for the session. The EUR/GBP is trading at 0.9003 Pence, up 0.23%; the pair has ranged from a low of 0.89704 Pence to a peak of 0.89911 Pence.
Debate on Post-Brexit Life
Economists generally agree that unless the UK government is able to secure a trade agreement with the EU, it would likely cause serious damage to the UK economy, the fifth largest in the world. Without an agreement, UK trade would find itself subject to regulatory impediments and trade tariffs which cold hamper growth. On the other hand, Brexit supporters believe that the initial pain would be short-lived during the adjustment period. In the end, they believe that cutting ties with the EU is in the UK's best interests.