Pound set for best day since 2008 after Theresa May's statement

The pound climbed against the US dollar as Prime Minister Theresa May said UK lawmakers will get a vote on the final deal for an exit from the trading bloc.
The pound climbed against the US dollar as Prime Minister Theresa May said UK lawmakers will get a vote on the final deal for an exit from the trading bloc.PHOTO: AFP

LONDON (BLOOMBERG) - The pound climbed against the US dollar, set for its biggest advance since the global financial crisis, as Prime Minister Theresa May said UK lawmakers will get a vote on the final deal for an exit from the trading bloc.

The currency strengthened the most since October 2008 as Ms May made the announcement in a speech laying out the government's Brexit strategy, which involves pulling out of the EU's single market. Sterling is rebounding from Monday's biggest decline in a month that reported the main substance of Ms May's speech without the additional detail on the parliamentary vote.

"The fact that the UK Prime Minister Theresa May will put a final Brexit deal to vote in both Houses of Parliament is positive for sterling," Athanasios Vamvakidis, a London-based strategist at BofAML, said in e-mailed comments. "In order for the parliament to approve it the deal has to be good."

The pound climbed 2.5 per cent to US$1.2347 as of 12:50 p.m. in London. The currency fell to as low as US$1.1986 on Monday. It was trading at 1.76 against the Singdollar.