As the pound declined sharply over the past two trading days over the fear that Prime Minister Theresa May’s government might be preparing for a hard Brexit, Ms. May denied such allegations. Speaking to reporters after a speech on UK’s mental health policy, Ms. May said that she doesn’t accept the terms ‘hard’ or ‘soft’ Brexit and added that she is tempted to say that people who say that her government favors hard Brexit is getting it wrong. She stressed that her government would work to secure the possible deal for the United Kingdom in terms of trading and operating within the European single market.

Does this mean that we shouldn’t fear a hard or disorderly Brexit, where the UK gives up access to the European Union’s single market?

Absolutely! Simply because her government has made it clear that that the priority remains immigration. She added to the reporters that her government would work for an entirely new relationship rather than trying to keep bits of the current membership. She stressed that the June 23rd vote made it very clear that the people want to take control of immigration.

Since her European partners have stressed that the UK would have to accept the free movement of labor in order to get access to the single market, as of now there is no soft exit in sight.  

The pound is currently trading at 1.215 against the dollar.