GBP Tumbles as May Prepares Article 50

The pound tumbled against all of its Group-of-10 peers as London traders sold the currency after U.K. Prime Minister Theresa May was given the go-ahead to trigger Brexit.

Sterling had a delayed reaction to the news, which came out late Monday in London and gives May the chance to formally kick off negotiations with the European Union. Market participants had been reluctant to sell the currency during Tokyo trading hours as markets were quiet before the Federal Reserve meeting on Wednesday, according to Masashi Murata, a currency strategist at Brown Brothers Harriman. The selloff comes a day after Scottish First Minister Nicola Sturgeon signaled the start of a legal process for an independence

The pound has been one of major victims of the U.K.’s vote to exit the European Union, and has fallen about 19 percent versus the dollar since the June referendum. Sterling has also shown a propensity to drop after new developments in the Brexit process, even if, as is the case for Monday’s votes, they have been widely expected.

Bloomberg

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