Today has seen the pound rise to its highest level against the dollar since the 4th October, with the currency pair hitting $1.2763. For the best GBP/USD exchange rates click here.
The pound received an unexpected boost after UK Prime Minister Theresa May shocked the markets by announcing plans to hold a general election on the 8th June.
As you can see from the graph below, the pound surged on the back on the news with the GBP/USD cross rising from $1.2523 to $1.2763.
GBP/USD graph
Why has the announcement caused the pound to rise?
Theresa May's plans to hold a general election have been seen as a positive by the markets, largely because of the lead she currently holds in the opinion polls.
Figures released over the weekend showed that the Conservative Party currently hold a 21 point lead over Labour and it would seem Theresa May believes that now is the time to strike.
By holding the general election now it will also allow Theresa May to see the Brexit negotiations through to the end, another positive in these uncertain times.
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