The British pound soars on new prime minister's Brexit view
On Wednesday, the British pound traded higher close to a two-weak peak against the common currency because Theresa May was set to take over as the UK’s new prime minister, thus easing some of the political uncertainty, which has dogged the currency for the last few weeks.
Market participants are going to keep an eye open on who will be officially appointed as finance minister, while many waiting for clarity on the new prime minister's detailed thinking on triggering Article 50, the standard procedure to leave the European Union.
In spite of the recent Brexit vote, the United Kingdom won’t rush triggering the formal divorce proceedings. The choking uncertainty over whether the UK will be able to retain access to the single promising market having exited the European Union, along with hopes that the Bank of England could diminish rates on Thursday, make market participants wary of sterling.
The British pound surged 0.1%, being worth $1.3270, having achieved a peak of $1.3340 during the Asian trading session, the highest value since July 4.