The pound held steady this morning after Labour won a majority in the general election and Sir Keir Starmer pledged that “change starts now”.
Sterling was little changed at $1.2767 against the dollar in overnight trade, not far from a three-week high of $1.277 touched on Wednesday.
The FTSE 100 is expected to open around 20 points higher when trading starts soon.
The British currency rose 1% this week, its best weekly performance since mid-May, and remains the strongest performing major currency against the dollar this year with gains of 1.2%.
On a trade-weighted basis, the pound is now back to where it was in 2016 at the time of the Brexit vote, reflecting a belief among traders and investors that