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After opening this morning's London session at $1.25, the pound slipped to a one month low of $1.2375 against the dollar, as uncertainty mounted over how the UK will assist businesses during the country's exit from the European Union.
GBP/USD graph
Speaking on Sunday, Trade minister Liam Fox hinted that the UK will probably need a transitional agreement in order to help firms during negotiations with the Union. However he did state Britain should avoid buying back into many of the EU's regulations.
Investors also seem to have reacted to a report published by the Financial Times yesterday, which mentioned that the EU negotiators are insisting the UK agree to its divorce settlement before any deal is offered by Brussels.
What next for GBP/USD?
The move we have witnessed today means the GBP/USD cross has now fallen nearly three per cent since Wednesday evening, which in monetary terms means converting £300,000 into dollars now returns around $11,500 less than it did last week.
With the pound likely to come under even more pressure in the coming weeks we could see things get even worse for the GBP/USD cross.
The Supreme Court ruling and the UK Government triggering Article 50, are both likely to add to the pounds woes as uncertainty increases, and I wouldn't be surprised to see GBP/USD test the $1.20 before too long.
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