London 3 Oct (ANA) - Sterling has fallen to a three-year low against the euro after Theresa May outlined the timetable for starting Brexit negotiations. It also hit its lowest level against the dollar since the beginning of July. On Sunday, the prime minister said she would trigger Article 50, the clause needed to start the process, by the end of March 2017. That means the UK is likely to leave the EU by mid-2019. In early morning trade, the pound fell by about 1% against the euro to €1.1433 before recovering slightly. It was also down 1% against the dollar at $1.2854 at one point, its lowest since 6 July, when it hit $1.2797. Mrs May's announcement had "unsurprisingly, been bad news for the pound", said Connor Campbell, Spreadex financial analyst. "Sterling has been spooked by May's promise to trigger the dreaded Article 50 by the end of March 2017." However, the currency had been particularly unsettled by the prospect of the UK leaving the EU single market, he said. "The PM, in a move to appease the more rabid members of the Tory party but one that is set to cause revolt from the backbenchers, has signalled that curbing immigration is the top Brexit priority even if it comes into conflict with Britain remaining in the single market," Mr Campbell added. "Combine all this volatility together and the pound has been left at its worst price since the start of July." (ANA)

FA/ANA/3 October 2016------