For the past couple years, the British Pound rallied every time it appeared Theresa May might get her deal though or there would be an extension.

Today, vs the US dollar, the Pound fell to its Lowest Level Since 2016.

The Wall Street Journal reports Pound Pushed Toward Historic Low as Investors Worry Over Brexit.

The British pound slipped closer to its lowest sustained level against the dollar in more than 34 years on rising investor fears of economic disruption if the U.K. quits the European Union without a deal to smooth its exit.

Two days of heavy selling pushed the currency as low as $1.2091 on Tuesday, according to FactSet. That is still above its lowest level since the Brexit vote, when it finished European trading hours at $1.2065 in January 2017. If it breaches that level, the pound would be at its weakest against the dollar since early 1985, when it almost reached parity.

“People had thought that Boris Johnson may soften his stance once he was in power, but now the market is realizing that a no-deal Brexit is a very real possibility,” said Seema Shah, chief strategist at Principal Global Investors in London.

Mr. Johnson won a vote among members of the U.K.’s ruling Conservative Party to become leader, subsequently replacing Theresa May as prime minister last week. He has since named a leadership team packed with politicians determined to get out of the EU by the next deadline of Oct. 31 by whatever means necessary.

Reality Sets In

Reality has finally set it.

The UK Prepares for No Deal: Attorney General Says Early Elections Can't Stop Brexit


From the perspective of the UK and EU, the pound vs the Euro is far more important.

Pound vs Euro

Image placeholder title

Since April 27, the pound has fallen 7.3% vs the Euro.

Pound Rising and Falling on Brexit News

Image placeholder title

The pound's major free fall started in 2014 before the referendum and has been trading in a Brexit news range since.

The pound is now testing the lows hit several times in the past three years.

Mike "Mish" Shedlock

British Pound Dives as Brexit Reality Sinks In

The pound is the worst-performing major currency in the world since March. Brexit reality is starting to sink in.

Fear of Corbyn Outweighs Fear of Brexit

This election is no longer primarily about Brexit, it's primarily about Corbyn.

Pound Surges as Johnson on Brink of a Brexit Deal

A Brexit deal looks highly likely but it will likely take an extension to get the deal signed, sealed, and delivered.

Secret Brexit Negotiations in the "Tunnel" to Begin

The British Pound is up again on news of pending Brexit negotiation talks between the UK and EU.

Brexit Fears Lead to Record UK Stockpiling

UK businesses are stockpiling everything from auto parts to Ben & Jerry's ice cream due to Brexit fears.

Steen Jakobsen, Saxo Bank CIO on the UK Election, Pound, Euro

Steen Jakobsen, Saxo Bank Chief Investment Officer, comments on the UK election, the British Pound, and the Euro in a recent email report.

Six UK Government Ministers Quit Over Brexit: Pound Slammed, Deal in Doubt

After digging into the 585-page Brexit document, Theresa May's ministers came to the right conclusion: The deal stinks.

Johnson Has the Votes, Will Deliver Brexit Saturday

A constitutional challenge to Johnson's Brexit deal has been tossed by the courts and Johnson believes he has the votes.

Brexit Coin Toss: Heads Johnson Wins, Tails Johnson Wins

Heading into the final Brexit stage, Johnson has outplayed his opponents.