When the British people voted in favor of leaving the European Union, the decision sent shockwaves through global markets. We saw the value of sterling plummet almost instantly, and many people around the world quite understandably feared the worst. Now, just as David Cameron is about to hand the top job over Theresa May, we are witnessing something quite spectacular. Already the breaks have come on, and the pound is no longer in freefall. To the contrary, it is suddenly gaining against the dollar.
As of early this morning, sterling is the highest it has been since the 4th of July, and according to some economists, it is likely to continue climbing, at least for the next month of two. Many people believe that this sudden climb has a lot to do with the fact that Mrs. May is due to take over at the helm, and the fact that she has made it clear that she is not going to allow Europe to determine the pace of the Brexit process.
Of course, currency speculators will also be watching events unfold, and already, we are seeing people buying sterling, in the hope that it will continue getting stronger in the coming months. Personally, I don’t we’ll see any serious ups and downs in the immediate future because with a new prime minister already elected, a lot of the political uncertainty that followed the Brexit vote has now been put to rest, at least for the time being.