LONDON — The pound is pulling a little higher on Thursday, after British Prime Minister Theresa May delivered a speech to delegates at the World Economic Forum in Davos, Switzerland.
Prior to May’s speech, sterling was trading higher by roughly 0.4% on the day, but as she spoke, it extended those gains further and at around 9.30 a.m. GMT (4.30 a.m. ET), ten minutes into her speech, sterling was up 0.55% against the dollar to trade at $1.2325.
Here’s the chart:
Investing.com
May’s Davos speech is focused on broadly the same topics as her speech in the UK earlier this week, in which she confirmed that the UK will be leaving the single market and opting for a “Hard Brexit.”
That speech pushed the pound substantially higher, with sterling gaining 2.6% against the dollar during the trading session on Tuesday. On Wednesday, sterling resumed a familiar pattern, dropping 1%.
Traders and forecasters remain divided on sterling’s future path in 2017, with many seeing further weakness on top of the currency’s near 19% fall since the referendum, while others believe that the pound is now undervalued, and will rise over the course of 2017 as the Brexit picture becomes clearer.
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