Pound sterling seriously soars

Baku. 19 April. REPORT.AZ/ Theresa May has called a snap general elections for June 8, claiming that divisions at Westminster risked hampering the Brexit negotiations. 

Report informs citing The Guardian, disclosure of decision has led to the positive assessment of prospects for the pound by analysts.

According to edition quoting the German Deutsche Bank, experts say early elections are crucial for the exchange rate of the pound. Notably, earlier bank had negative outlook on the prospects for the pound.

“The election is likely to shore up the government’s hard Brexit line, making it even more likely to happen. However, we have felt for a while that the pound would rally. The devaluation that has taken place since the EU referendum has left sterling looking undervalued. Eventually those who have been speculating on its decline would need to close their positions,” Guy Foster, head of research for Brewin Dolphin said.

Keith Wade, chief economist at fund manager Schroders, said: “A successful election would give May the mandate to pursue her own Brexit strategy. My sense is that a stronger mandate and more time would allow a more patient approach and a softer Brexit, probably more in line with May’s instincts.”

Notably, this news has led to appreciation of pound sterling against US dollar by 3.2% rising from 1.25 USD/GBP to 1.29 USD/GBP. In Azerbaijani cash currency market, pound rose from 2.10 AZN/GBP to 2,17 AZN/GBP.