Forex – British pound down sharply in Asia on hard Brexit fears – The pound slumped in early Asia on Monday on reports that the British government is prepared to make a “hard” exit from the European Union.

GBP/USD traded down 1.13% to 1.2037, after hitting as low as $1.1983, a level not seen since the flash crash of early October.

U.K. Prime Minister Theresa May scheduled for Tuesday where she is expected to announce a hard exit from the European Union.

May will announce a “clean and hard Brexit” and prepare to pull the U.K. from the European market and the European customs union in exchange for the ability to control immigration laws and leave the jurisdiction of the European Court of Justice, the Sunday Times reported Sunday.