Is the pound set for a pre-Brexit rally?

The jump in sterling after Theresa May’s surprise announcement of a snap general election has posed the question of whether the pound might defy expectations and rise further as Brexit approaches. Conventional wisdom has had it that the pound will fall further over the coming quarters as the commencement of the Brexit negotiations leads to increased uncertainty and the economy slows. And the “harder” the likely form of Brexit, the further the pound is expected to drop. But the appreciation of the currency seen after Prime Minster May’s surprise announcement of a snap general election has arguably called that into question.