The Pound Sterling has dropped like a rock and all the past gains are because being wiped off.
Traders have finally woken up to the reality… that if Theresa May triggers the article 50 as per plan, it will have negative impact on the British currency.
The reason is this spells only one thing for investors, that she is heading towards hard Brexit negotiations with an attitude of nothing to lose.
The biggest fear on the street is how will her EU partners react in negotiations and how are they going to now treat the currency as Brexit becomes reality.
Uncertainty is always bad for traders who use the currencies to hedge other trades. Without stabile political conditions, standard coupling trades used for hedging will go elsewhere and the Pound Sterling is certain to suffer as a result.