The Pound Sterling earlier struck a 1-week peak on news that the UK Prime Minister would take charge of the Brexit negotiations. That helped ease investors' concerns that the Brexit deal could be one which would not favor UK players. Analysts that that Theresa May's role in the talks would likely bring a favorable agreement in the “divorce” to fruition. Britain is scheduled to leave the EU in about nine months, and with time a critical factor, the discussions are certain to continue to be a stumbling block to the Pound's future.
As reported at 11:19 am (BST) in London, the GBP/USD was trading higher at $1.3162, a gain of 0.12%; the pair earlier hit a session high of $1.3174, while the low is at $1.3138. The EUR/GBP is trading at 0.88842 Pence, down 0.03% and off the session trough of 0.88780 Pence while the peak is recorded at 0.88969 Pence for the day.
Brexit Outlook Brightens
The latest figures show that 86% of investors believe that the Bank of England will likely increase interest rates by 25 basis points at next week's policy meeting. The news that Theresa May will now take the reins of the negotiations over a dedicated ministry team has been warmly received by financial markets. Analysts believe that Ms. May's inclusion will more likely result in a “cooperative outcome” with the EU, rather than one in which there will be a “hard” Brexit.