The pound has made a stunning recovery in late trading today making its biggest one day gain since 2008 after a speech today in the UK by Prime Minister Theresa May.
At 5.05pm (GMT) the pound was trading at $1.2383 against its US counterpart up 2.85 percent from yesterday’s trading.
Many expected May to deliver a hawkish speech on the terms for leaving the European union, but she back tracked on a number of issues such as agreeing to let parliament vote on the final terms of the deal to split from the EU,
"The pound took off like a rockettoday on what amounts to a far less hawkish Brexit speech from Theresa May thanmany had feared." said Neil Wilson, senior market analyst at ETXCapital,
The one policy Mrs. May didn’t back downon was the here drive to control immigration which was the cornerstone of Brexit and she acknowledged that Britain would have to leave the single market in order for her to do so,
This in itself may cause problems according to some, as the UK may suffer from a severe skills shortage with the number of workers coming to the UK set to slump
"With the prime minister signaling today that the UK will make a clean break from the EU, it is inevitable that the number of foreign workers coming to the UK will fall after Brexit, so we need to invest heavily in home grown talent now to ensure that we have the skilled workers capable of plugging the gaps." Said Ann Francke, chiefexecutive, Chartered Management Institute.