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Reuters said sterling rose against the dollar and held steady against the euro this morning (May 13th) during forex trading.
Speaking to the international news agency, currency strategist at the Bank of New York Mellon Neil Mellor stated: "You have to remember that sterling has fallen quite a lot based on political uncertainty so by definition if you remove huge uncertainty sterling should rise," adding it was "clear we're in a honeymoon period".
Forex trading has proved sensitive to the recent political announcements, with sterling gaining strength after Gordon Brown revealed his resignation as Labour leader.
Included within the coalition agreement were plans to reform the banking system in order to make the UK's economy more competitive and to promote sustainable growth.
A banking levy will also be introduced, although more discussions are required before a final statement on this matter is made.
Posted by Sara Secker
