Great Britain Pound Jumps as Markets Welcome New Prime Minister

The Great Britain pound jumped today as the market sentiment continued to improve following the news about Britain getting a new Prime Minister. The currency demonstrated the biggest one-day gain since the huge drop after the Brexit vote.
The sterling has strengthened since the announcement that Home Secretary Theresa May is going to replace David Cameron as the new Prime Minister. The initial reaction to the news was muted as the currency just trimmed its earlier losses. But now, the pound rallied strongly, logging the biggest daily gains against the yen in over three years.
The outlook for Britain’s currency remains bearish though. Analysts anticipate monetary easing from the outlook for Britain’s currency this week followed by another interest rate cut next month. Additionally, economist talk about the possibility of recession in the United Kingdom due to the Brexit.
GBP/USD climbed 2.1% from 1.2988 to 1.3263 as of 17:46 GMT today. EUR/GBP tumbled 1.9% from 0.8505 to 0.8347. GBP/JPY rallied as much as 4.2% from 133.56 to 139.17.

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