Sterling has finally found the bottom and now it is picking itself up off that floor.
The pound is up over 1% against the dollar in early trade in London on Wednesday morning, having touched a low of $1.2106 overnight.
Here is how the pairing looks at close to 7.10 a.m. BST (2.10 a.m. ET):
As you can see from the above chart, part of the reason it is rising is because the pound collapsed against the dollar overnight to a new 31-year low (the red line signifies where the pound was when midnight came.) From that perspective, the rise is a little less impressive.
The climb follows a dreadful run of form for the pound against the dollar, which has seen it collapse almost 5% since the start of last week.
Sterling began falling after Prime Minister Theresa May set a firm date for triggering Article 50, which would begin the official process of Britain leaving the European Union.
Things have not been helped by reports that Theresa May is unwilling to bend to the will of financial services in negotiations, signals that a “hard Brexit” — a complete break from Europe — is the most likely outcome, and an estimate that such a departure would cost the UK £66 billion in lost taxes. Oh, and then there was a mysterious “flash crash.”
But it seems like after such a deluge of bad news and such a vertiginous fall for sterling, no bad news now counts as good news for the currency and a relatively quite agenda on Wednesday morning means some are seeing value.
The pound is also climbing against the euro. Here’s how the pairing looks at just after 7.15 a.m. BST (2.15 a.m. ET):
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