Pound swings wildly as U.K. leader calls for early election

U.K. Prime Minister May to seek early election

The pound charged higher on Tuesday after Prime Minister Theresa May called an early election, a gambit aimed at cementing her position ahead of tricky Brexit negotiations with the European Union.

The British currency dropped ahead of May's surprise announcement, but it reversed course and entered positive territory as she spoke. The pound continued to strengthen as investors digested the news, surging 1.6% to surpass $1.27, its highest level against the dollar in 2017.