Sterling Rises For Second Day, Market Eyes Brexit Politics

38877083 - 27_06_2016 - BRITAIN-EU_STERLING
LONDON (Reuters) – Sterling rose for a second day on Wednesday, helped by rising stock markets, although lingering concerns over UK growth and investment after Britain’s vote last week to leave the European Union were likely to limit gains. Investors were taking some reassurance from the fact that British politicians were not rushing to trigger the Article 50 mechanism for a state to leave the EU, despite European leaders telling Britain to act quickly. Two British opposition lawmakers were starting to push for a second Brexit referendum, and traders said that given the political uncertainty and leadership battles within the ruling Conservative Party and opposition Labour, investors were likely to stay cautious. The pound rose 0.6 percent to $1.3413 <GBP=D4>, having risen 0.8 percent on Tuesday, with traders citing offers to sell the currency at $1.3450 and $1.35. It plunged 11 percent after the British referendum to a 31-year low of $1.3122 on Monday. The euro was down 0.25 percent at 82.70 pence <EURGBP=D4>. “It would be far too early to think that tensions have completely eased,” said Thu Lan Nguyen, currency analyst at Commerzbank. “There is still considerable uncertainty as to what will happen in the UK following the