Hard Brexit pulls down pound sterling

The British pound hit a new 31-year low against the U.S. dollar on Tuesday as markets continued to digest the news that the U.K. seems head for a "hard" exit from the European Union. The pound closed at $1.2759. It's weakest value since June 1985.
The so-called "hard Brexit' is the way to leave it with restricted access to the EU single market. 

The decline of the pound gave a lift to U.K.-listed stocks as investors saw companies benefitting from a weaker currency that makes British goods and services cheaper in foreign markets.

“Speculation about Brexit has picked up since the weekend, which has put continuous downward pressure on sterling, but the main driver today has been US dollar strength,” said Commerzbank currency strategist Esther Reichelt, from Frankfurt.
Reuters, citing a report on Tuesday commissioned by a financial industry group, reported the British financial industry could lose up to £38 bln ($48.34 billion) in revenue in a so-called 'hard Brexit' that would leave it with restricted access to the EU single market and between 65.000 to 75.000 jobs.

Over the weekend, British Prime Minister Theresa May set a deadline of the end of March to trigger the start of the formal process to leave the EU. May invoked  Article 50 of the Lisbon Treaty, it means the U.K. will then have a two-year window to negotiate the exit.