>> Sterling saw its biggest gains in nine years Tuesday. As prime minister Theresa May announced Britain would seek to stay a key European partner. The pound surged 2.5% to a ten day high of $1.2343 dollars in the minutes that followed May's speech. But the jump isn't quite as positive as it seems.
Reuters chief correspondent financial markets, Jamie McGeever.>> Don't forget, we have come from a very low starting point on sterling. It was hammered on Monday as leaks of May's speech came out in the press on Sunday evening. And it was below 1.20 against the dollar. It rallied back to above 1.23.
So it was coming from a very low starting base.>> One media report at the weekend predicted May's speech would trigger a significant correction in the pound. Until Tuesday's action most had assumed that would be downward, not upward. Investors watching May's speech were comforted by her tone.>> Investors kind of relieved that May's tone was conciliatory.
It was friendly. It wasn't antagonistic towards the rest of the EU. She talked about transition agreements. And a kind of softly, softly approach to what is ultimately going to be a hard Brexit.>> While the pound has made a large jump, experts say anything could happen as the UK gets closer to leaving Europe.