Pound Sterling has recovered from the lows witnessed yesterday, up .75% against the Euro and 1.78% against the US Dollar. May has confirmed that Parliament will have a final say on any Brexit deal, in line with the High Court’s Brexit challenge.

The PM has also made clear that the UK will not hold on to certain aspects of EU membership, by which she plans to take the UK out of the single market and customs union. She added that the process would be smooth and existing European laws would be replicated to deal with the many layers of change that the UK faces.

The Pound rallied for a short session, but continues to lose momentum at the time of writing.

What next for the UK?

The assumption now is that May will invoke Article 50 in March, and begin the process of withdrawing from the EU for a period of 2 years, by which a new trading framework will be agreed between the UK and remaining 27 members.

With the UK now heading for a ‘hard’ Brexit, the Pound will remain vulnerable to the high levels of uncertainty faced by businesses and investors alike. One of the main driving factors behind Sterling going forward will hinge on the negotiations, and whether the EU will adopt a softer approach to the UK’s decision in June. Mark Carney – Governor of the Bank of England made stark warnings to the EU if they push ahead with punishing the UK. Carney claims that the EU would be just as worse off, his words echo similar comments from the Chancellor Phillip Hammond, who will look to make inward investment more attractive if the EU play hardball.

It is now expected to be a difficult negotiation phase for the UK, and further movements for the Pound are likely to arise depending on how the negotiations sway in the early stages.