Consequently, currency trades were worried that sentiment out of London were pointing to a so-called Hard Brexit where the U.K’s access to the European market would be limited under the terms of the country’s exit from the union.
“It seems as if we are heading for a hard Brexit, as Theresa May revealed that control of immigration is the most important issue,” Mikael Olai Milhøj, senior analyst at Danske Bank, told the Financial Times.
Observers argued that the U.K. may be leaving the European market after E.U. leaders said access to the market means the U.K. would have to accept free movement of labor. Consequently, U.K. institutions, notably the banking industry, would lose their passport access to the European market for financial services.
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