British Pound surges to best weekly gain since March this year

The pound has been falling against the US dollar ever since the UK’s decision to leave the EU in the referendum on 23 June earier this year. The pound has been near a three decade low in response to “hard Brexit” talk at the Conservative party conference in October.

After falling more than 6 per cent last month, the pound has begun November on a positive rise. This week, buyers have pushed the pound from near $1.21 to $1.25, 0.6% firmer on Friday in the late afternoon and 0.5% stronger against the euro at £0.8869.

Reasons for the increase include: governor Mark Carney’s confirmation that he will remain governor for an additional year until 2019, and yesterday’s landmark High Court verdict against the government over the Government invoking Article 50 without parliamentary vote. Further volatility can be expected, however, as the Government appeals the High Court ruling in the Supreme Court in early December this year.