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Pound Jumps as Theresa May Becomes Prime Minster

The value of Sterling rallied today after Theresa May entered 10 Downing Street earlier today as the new Prime Minster of the United Kingdom.

Sterling increases as Theresa May is appointed Prime Minister

The value of Sterling rallied today after Theresa May entered 10 Downing Street earlier today as the new Prime Minster of the United Kingdom.

Following a brief leadership contest within the Conservative party, Mrs May, the former Home Secretary, emerged as the winner and the new Prime Minister, following David Cameron’s resignation.


Immediate response from the currency exchange markets saw the value of the pound increase to $1.33 against the dollar, following a turbulent week for Sterling that has seen the exchange fall as low as $1.28.


The market response follows nearly three weeks of economic and political uncertainty in the UK following the UK’s shock decision to leave the European Union in last month’s referendum.


The decision led to the resignation of David Cameron, announced on the morning of the Brexit result.


Speaking to the press on 24 June, Mr Cameron reiterated his belief that, in the wake of the results, the UK now needed a new leader to guide them through the process of exiting Europe, one that could better reflect the views of the electorate.


With May’s appointment, the market response has been positive, seeing a greater sense of stability returning to the UK’s political sphere.


On Thursday, the Bank of England will announce its plans for the interest rates in the wake of Brexit. Since the announcement of the referendum results, it has been widely speculated that Mark Carney, governor of the Bank of England, and the Monetary Policy Committee will cut the base interest rate to 0.25%, cutting the cost of borrowing.

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