David Cameron

Pound surge suggests UK election will yield smoother Brexit

The British pound's surge since Prime Minister Theresa May's surprise election call represents an early sign of optimism that the country's exit from the European Union may be smoother than many had feared.

While the vote increases uncertainty in the short term, traders think that the expected resounding victory by May's Conservative Party could help the prime minister face down critics — both within her ranks and the opposition — in upcoming Brexit discussions.

Spiking by more than 3 cents to $1.2876 in the hours after May's announcement Tuesday of a June 8 general election, the pound hit its highest level since early October. It's given up some of those gains Wednesday,...

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