Sterling hits new 32-year low against the dollar

Baku. 16 January. REPORT/ The pound dropped to 1,1995 USD/GBP on a report that U.K. Prime Minister Theresa May will signal plans to quit the European Union’s single market to regain control of Britain’s borders and laws. Haven assets from gold to the yen rose while stocks fell across Asia.

Report informs citing the Bloomberg.

According to the Sunday Times, sterling declined as much as 1.6 percent against the greenback after the Sunday Times said May will prepare to withdraw from tariff-free trade with the region in return for the ability to curb immigration and strike commercial deals with other countries. Notably, U.K. Treasury meeting expected tomorrow and after prime minister statements investors would calm down.

"The market is now positioning for some fairly punchy rhetoric from Theresa May and this idea of hard Brexit and a clean break from the single market seems increasingly likely," said Chris Weston, Melbourne-based chief market strategist at IG Ltd. “The prospect of volatility here is now very high”.

Analytical Group Report informs, USD / GBP exchange rate fell below the 1.20 before February 1985 to the minimum level of 1,0790. Last year, for technical reasons on October 7 the dollar declined from 1.2630 to 1.1450 on Forex market, then has stabilized in the range of 1,21-1,28 USD / GBP. Analytical Group believes pound can further decline to 1.10 USD / GBP in 2017.