Brexit referendum June 23 2016
Following the vote for Brexit on June 23 the pound plunged from $1.43 the week before the Brexit vote to $1.36 as the market panicked following the result. David Cameron the Prime Minister resigned and Theresa May emerged as an unlikely leader to see Brexit through.
The Flash Crash
The pound lost an unprecedented 10% of its value in late night trading in Asia. Sterling plunged to $1.21. The huge collapse in value overnight prompted a Bank of England to launch an investigation. In the early morning of Octeber 7th sterling plunged 9 per cent and recoved at the start of the Asian trading day.
The Snap General Election 2017
Theresa May’s gamble on a snap election did not pay off. She had hoped for a stronger mandate to deliver Brexit. Instead it resulted in a hung parliament, leaving the Conservative relying on Northern Ireland's DUP to stay in power. The pound fell from as high as $1.29 on Thursday June 8th 2017 to a multi-month low of $1.26 on Friday morning.
Theresa May's Florence Speech
Prime Minister Theresa May used a speech in Florence to set out the UK's position on how to move Brexit talks forward, focusing on Trade, Citizen Rights and a Transition Period. The market reacted in the midst of her landmark address when she confirmed that the UK would still eventually leave the single market and customs union as part of its divorce from the EU. Her speech originally sent the pound to daily lows against the US dollar to $1.35.
The Irish Border Backstop disagreement
The pound began a downward spiral as it emerged that there was no simple means to solve the issue of the Irish Border backstop. This sticking point made the prospect of a No Deal Brexit increasingly likely. The markets reacted by pummeling the pound. The bad news increased as the house of Lords voted against the government forcing a meaningful vote on Brexit.
Conservative rebles seek vote of no confidence in May
Just as the mood seemed to be improving both in Brussels and Downing street with the pount recovering to highs of close to $1.30 Tory hard Brixiteers tried to stage a mutiiny. The prolonged wait for letters to try and oust the Prime Minister dragged the pound down. As it became clear May would survive the pound continued to fall to $1.25 as the markets stared at the uncertain government and waited for the opposition to react.