Article 50 triggered, sterling steady

Sterling slipped 2 points to 1.23 mark against the U.S. dollar Wednesday morning as the market adjusted to price in the article Article 50 trigger. Falls were also recorded against the Euro at 1.146 and Asian currencies, SG dollar 1.731 and HK dollar 9.62.

Whilst the pound is higher than the 31 year dollar low of 1.20, analysts predict further sterling volatility as the complex negotiations to exit the EU formally begin, reports CNBC.

Sterling defied city fears of short selling, recovering all its early losses by lunchtime, signaling that UK economic fundamentals are resilient to Brexit shocks, reports Reuters. The FTSE 100 also traded up, gaining 49.92 points, or 0.68%, to 7,343.42.

U.K. PM May’s letter to the European Council President triggering Article 50 of the Lisbon Treaty, was delivered this morning.