The British pound hit a post-Brexit low and the lowest level since 1985 against the U.S. dollar today as worries around a Brexit hard landing continue. The timeline for the U.K. leaving the EU became clear over the weekend when British Prime Minister Theresa May said she would invoke article 50 - the tool for leaving the EU - before March 2017. This triggered the pound's fall. (See also: Pound Falls as May Promises March Brexit Move.)
After falling on Monday, the pound continued its slide this morning, reaching a post-Brexit low and trading at $1.2737, down 0.8% on the day and 14% since the June 23 referendum. The pound's slide saw it make a three year low against the EUR, trading to €1.1405.
Buoyed buy the lower currency, the FTSE 100, traded to 7119, up 1.8% on the day and just shy of the all-time record of 7122 set in April of 2015 as international investors swarmed to the cheaper pound.
Despite the fears of a hard landing, data this morning showed the U.K. economy remains resilient in the face of the Brexit fears with the September construction purchases manufacturing index (PMI) rising to 52.3, above the contraction level of 50 for the first time since May. "A number of survey respondents noted that Brexit- related anxiety has receded among clients, although it remained a factor behind the ongoing decline in commercial building work," said Tim Moore of IHS Markit.
The FTSE 100 has dragged other European stocks higher this morning with the DAX up 0.5% and CAC 1% in early afternoon European trading.