The GBPUSD is approaching the 1.31 handle after the pair saw a push higher following yesterday’s political developments that Theresa May is set to become the Prime Minister of the UK following the shock resignation of her rival for the role, Andrea Leadsom.
GBPUSD Chart
Source: finance.yahoo.com
Leadsom quitting the race is a positive for Sterling simply because a little more certainty has been delivered. Businesses no longer have to spend the next nine weeks awaiting the outcome of a leadership battle.
May is expected to take over Cameron Wednesday evening.
The good news is that Mrs. May is an experienced politician who is a known quantity in Brussels. She may also get a more sympathetic hearing from other EU leaders given that she campaigned on the side of Remain and may thus be in a better position to cut a deal,” Peter Dixon, analyst with Commerzbank in London commented.