Volatile day for sterling amid Brexit reports

The pound was subject to another day of volatility as currency traders digested a flurry of reports that detailed the impact of a hard Brexit.

Sterling made gains early in the day before dipping, and then rose again after the market close, just as the Bank of England released a doomsday Brexit assessment.

The pound was up 0.5% versus the US dollar to $1.280 and flat against the euro at 1.12 in evening trade.

It came after the Bank warned the pound would crash, inflation soar, interest rates would have to rise and Britain’s growth would plummet in the event of a no-deal disorderly Brexit.

Earlier in the day the government released its own Brexit impact assessment, which found that withdrawal from the EU under Theresa May’s plans could cut the UK’s GDP by up to 3.9% over the next 15 years.

Leaving without a deal could deliver a 9.3% hit to GDP over the same period and the UK will be poorer in economic terms under any version of Brexit, compared to staying in the EU.

The FTSE 100 closed down 12.33 points, or 0.18%, at 7,004.52.

Germany’s Dax was down 0.09% while France’s Cac 40 was flat.

A barrel of Brent crude was trading at $60, down more than 1%.

The biggest risers on the FTSE 100 were Antofagasta up 27.8p at 806.4p, Ocado up 17.4p at 833.4p, Just Eat up 11p at 589p and Ferguson up 90p at 4,907p.

The biggest fallers were easyJet down 59.5p at 1.159.5p, Persimmon down 99p at 2,014p, Taylor Wimpey down 6.2p at 141.4p and IAG down 24.6p at 632.4p.