Sterling falls to lowest level since October

The pound fell to the weakest levels since October’s flash crash on Monday, ahead of a speech by U.K. Prime Minister Theresa May on Tuesday, where she is expected to outline plans for Britain’s exit from the European Union.

GBP/USD hit lows of 1.1988, falling below the 1.20 level for the first time since October’s flash crash, and was last at 1.2039, off 1.09% for the day.

Investors fear that May will outline plans for the U.K. to leave the single market and the customs union in order to prioritize immigration controls and bilateral trade deals in a so-called "hard Brexit".

The pound's fall has come off the back of reports in Sunday newspapers that later this week Prime Minister Theresa May will say the UK is prepared to leave the Single Market, customs union and the jurisdiction of the European Court of Justice.

The speech, on Tuesday, will set the course for the UK's exit from the European Union.

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