THERESA MAY has gathered her senior ministers in Downing Street as the UK prepares for a “pivotal moment” in its journey to a future outside the European Union.
The Prime Minister has signed the letter that starts the formal exit process and the historic document will be hand-delivered by a senior diplomat to EU chiefs in Brussels.
Shortly before a Cabinet meeting, Chancellor Philip Hammond said the letter sets the “right tone” and sends the “right signals” to European leaders about how the UK wants to conduct the negotiations that will decide the country’s future.
At some time after 12.30pm the premier will inform MPs that Brexit is being triggered and, in Brussels, British ambassador to the EU Sir Tim Barrow will deliver the document to European Council president Donald Tusk.
Once it has been accepted, Article 50 has been officially launched, starting a two-year countdown to the UK leaving the EU.
Mr Hammond said it was an “exciting time”, telling the BBC Radio 4 Today programme: “This is a pivotal moment for Britain.”
Sir Tim arrived at the European Council clutching a briefcase containing the Article 50 letter as cameras captured the historic moment.
He said “Morning” to reporters as he walked into the Europa Building in the heart of the European quarter, where he is expected to hand the document to Mr Tusk this afternoon.
Sterling shows Brexit jitters ahead of Article 50 triggering
Sterling was showing some Brexit jitters ahead of Theresa May’s landmark move to trigger Britain’s exit from the European Union.
The pound was down 0.4% against the US dollar at 1.24, and slipped 0.2% versus the euro at 1.149, as the Prime Minister signed the historic letter that will start the Article 50 process.
The FTSE 100 index began the session on the front foot, rising 25 points to 7,368.11, continuing gains from the previous session when it was buoyed by the UK currency’s decline.
Neil Wilson, senior market analyst at ETX Capital, said the pound would struggle for momentum unless the Prime Minister “strikes an unexpectedly dovish stance”.
He said: “Details are everything now. We could be in for a rough ride today as currency traders react to the contents of the letter being delivered to Brussels and the language May uses in parliament.
“And we’re in for a long period of volatility for the pound and UK assets as the Government embarks on protracted and hugely challenging Brexit negotiations.
“Markets are only a gauge though, they’re not always that great at pricing in the kind of political risk associated with Brexit.
“In the backdrop is Scotland and the threat of a break-up of the UK.”
Britain’s permanent European Union representative Sir Tim Barrow will hand deliver the Article 50 document to the EU council president Donald Tusk on Wednesday, as Mrs May faces MPs’ questions in Parliament.
It will mark the start of complex and contentious negotiations that put the UK on course to break its ties with the Brussels club by the end of March 2019.
Mr Wilson added: “The big question now is whether Brexit has been fully factored in.
“A truly hard Brexit has not been priced into sterling. We could see it move lower still if negotiations take a sour turn – 1.10 US dollar is feasible.”
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