British Pound Spikes As Brexit Concerns Ease

The British pound rebounded from below $1.20 on Tuesday after flirting with its post-Brexit lows of $1.1841 ahead of a speech given by Prime Minister Theresa May.

May said in a speech in London that the United Kingdom will leave the single market as part of the Brexit process and has no interest in any partial membership in the European Union.

She also shot down the idea of agreeing to "anything that leaves us half in, half-out."

"Being out of the EU but a member of the single market would mean being subject to rules without a say in them," she said. "Staying in the EU would mean not leaving the EU at all."

Instead, the government will be advocating for the "greatest possible access" to the EU.

Her comments were encouraging and alleviate concerns that the government will prioritize securing the country's borders over access to the single market.

In fact, the British pound gained around 2.30 percent following May's speech, which marks its biggest surge since July 12 when it rose 2.41 percent. However, the pound is still lower by more than 15 percent from its pre-Brexit levels.

The U.K.-based Telegraph quoted Anthony Cheung of Amplify Trading who noted that May's speech could be seen as a "slight concession on stance" and represents an "opportunity for traders to join sterling's move higher."