U.K. Pound Surges for a Third Day

The U.K. pound surged for a third day as Theresa May prepared to take-over from David Cameron.

The U.K. pound rose 1.2 percent to $1.3179 against the US dollar as of 11:22 a.m. in London, reaching its highest since July 5.

The governor of the Bank of England, Mark Carney while answering questions from the Treasury Committee on Tuesday, boosted market’s confidence by allaying investors’ fear on housing prices and mortgage availability, he downplayed speculations that housing prices could plunge 18 percent post-Brexit.

This he said was due to the low unemployment rate, which put consumers in a better position to meet their mortgage payments and still maintain current consumption level.

According to the governor “unemployment is not as high as it was during past financial crisis, which means people are likely to meet their mortgage obligations.

“We have run those stresses and we have banks capitalised so they can withstand those stresses,” he said.