Pound recovers on government stability

The Pound has recovered somewhat as Gordon Brown held the first cabinet meeting since his emergency reshuffle.

Markets have reacted positively to Alistair Darling’s continuation as Chancellor, while the immediate threat to Brown’s leadership seems to have abated.

Confidence in some stability has fed through to forex markets, where the Pound is trading back up at 1.62 against the US Dollar and 1.16 against the Euro. The Australian Dollar rate has recovered to nearly 2.04.

We still expect volatility this week on any further developments, so if you need to buy currency at the best exchange rates for currency transfers make sure you keep in touch with your currency company.