BRITISH EXPORTS NOW COST LESS THAN EVER

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POUND TAKES ANOTHER DRUBBING AHEAD OF THERESA MAY’S UPCOMING BREXIT SPEECH

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Theresa May.

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The pound has hit its lowest level for more than three months on reports Britain was set to quit the EU single market as part of its Brexit plans.

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“Sterling fell below the $1.20 level before recovering slightly on Monday morning 16th Jan. The pound also dropped to a two-month low against the euro, falling more than 1% to 1.13 euros in Asian trading.

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Analysts said traders were reacting to reports that UK Prime Minister Theresa May would use a speech on Tuesday to signal a so-called “hard Brexit”. Reports suggest she will pull out of the EU single market and customs union, although Downing Street described this as “speculation”.

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The pound has fallen about 20% against the dollar since June’s EU referendum, to lows last regularly seen in 1985. Much of that volatility has been due to uncertainty about the economic impact if the UK gives up its tariff-free access to the EU.

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While Mrs May said she will trigger Article 50 by the end of March, starting the formal withdrawal from the EU, few details of the kind of deal she will seek have been revealed. Several of Sunday’s newspapers claimed Mrs May would outline a “hard Brexit” approach this week.“

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While a weaker Pound makes British exports cheaper and British manufactured goods financially very attractive in the short term, more expensive imports will eventually take their toll on the economy as a whole.

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Acknowledgements and thanks to BBC on line news for the picture and the information reproduced here in “quotes”


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