Talk of cabinet rejig improves pound's prospects
The pound gained ground yesterday as worries over Theresa May's leadership subsided amid rumours of a cabinet reshuffle.
Sterling rose nearly 0.8% against the US dollar around midday, but settled closer to 0.5% higher in afternoon trading at 1.312. Versus the euro, the pound was up 0.4% at 1.117. It follows a difficult few days for the pound, which tumbled to near four-and-a-half week lows on Friday following reports of a Tory plot to topple the Prime Minister.
David Madden, a market analyst at CMC Markets UK, said: "GBP/USD gained ground today after Theresa May hinted at a possible cabinet reshuffle to get the party into line. The pound sold-off last week as there were growing rumours of a possible leadership challenge, and the talk of a re-jig to her team has injected some much needed optimism into the pound."