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.