Sterling finishes up against the US dollar despite early losses

Sterling rose against the US dollar by 0.73 cents (0.46%) yesterday, finishing at $1.6051.

• In early trading yesterday, the pound fell by over 1.5 cents against the greenback after European election results revealed crumbling support for the Labour Party. The resulting pressure on Prime Minister Gordon Brown hit sterling hard, with the markets uncertain as to whether he will remain in office for much longer.
  
• However, the pound trimmed losses in late trading as some traders booked profits from selling in the pound over the past few days, which have sent it further away from the seven-month high it hit last week.
  
• In trading so far today, the pound has risen against the dollar after the news Gordon Brown will not be facing an imminent challenge for his leadership. The political uncertainty over the last week has weighed heavily on the pound so traders will be delighted the situation appears to be resolved.
  
• There are no major announcements due in the UK or US today.