Sterling steadies after May appointment
- Posted by Shyam Gokani in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Mark Carney, Sterling, UK
- July 12, 2016
- No Comments
Sterling rose along with UK government bond yields today as the early appointing of interior affairs minister Theresa May as prime minister fed into a generally improved global mood among financial investors.
The 1.2 percent rise in the pound against the dollar put it on track for its biggest daily rise since Britain’s vote to leave the European Union on June 23 drove sterling to 31-year lows.
The pound also gained half a percent to a one week high of 84.57 pence per euro, extending gains on Monday after the withdrawal of leading Brexit campaigner Andrea Leadsom cleared the way for May’s formal appointment this week.
Clarity on the UK’s leadership was another factor boosting investors’ appetite.
However, the big question remains as to when Article 50 is going to be triggered, and how investors are going to react to UK’s official departure from the EU.
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