Sterling is drowning again

Sterling is struggling to keep its head above water.

The pound is now down 0.22% at $1.2167 as of 7:54 a.m. BST (2:54 a.m. ET) as investors keep on pricing in the likelihood that Britain's government will opt for "Hard Brexit" - withdrawing from the EU without access to the Single Market.

The pound against the dollar continued to suffer:

Investing.com

Sterling also continues to flirt with parity with the euro:

Investing.com

Just over 24 hours ago, sterling had its worst run against the dollar since the referendum result on June 23. There was a short recovery before the pound started tanking again. Today is no better.

Investors seem certain now that May is unwilling to bend to the will of financial services in negotiations. On top of those fears, the UK Treasury this week leaked a document to say that a "Hard Brexit" would cost the UK £66 billion in lost taxes.

To make it worse, the pound collapsed as David Davis, the Secretary of State for Exiting Europe, answered questions on the government's Brexit strategy in Parliament.

Sterling initially rallied after prime minister Theresa May agreed to debate the triggering of Article 50, which begins the official Brexit process, in parliament. Traders hoped that signalled a more conciliatory stance. But Davis initially took a hard stance on the questioning and reiterated that control over immigration is the top priority in negotiations.

And it looks today that traders still have a hangover from those comments.