Despite the Pound's latest rise, it remains -15.00% below the level it was trading prior to the “Brexit” vote. The currency's rise has also caused huge volatility in the benchmark FTSE 100, with the index diving -2.50% on Tuesday, the biggest one-day drop since the UK referendum decision to leave the European Union. The Pound swung within a wide range, touching a low of $1.2515 earlier yesterday, before hitting a six-month high of $1.2763.
Since the decision took most investors by surprise, volatility should remain high as they digest the effects of an early election. The Pound's rally suggests investors believe May will win a comfortable majority in the House of Commons. In the meantime, GBPUSD is holding strong just below the prior session’s high, with the pair last seen around 1.2835.
Pound Soars to Six Month High
Daily Analysis - 19/04/2017