Sterling extends its gains against the euro to reach a fresh one-year high. Sterling's surprising resilience amid recent political turmoil reflects the fact that much of the bad news has already been priced in, Insight Investment's April LaRusse says in a note. "Investors have spent years positioning for U.K. underperformance, so as outcomes prove less negative than feared, and fundamentals begin to stabilize at the margin, the currency is finding support." Moreover, depressed U.K. equity valuations are attracting overseas interest, with U.S. buyers in particular driving a wave of mergers and acquisitions. If those flows continue then sterling could rise further, LaRusse says. The euro falls to as low as 0.8537 pounds. Against a stronger dollar, however, sterling falls 0.1% to $1.3377. (renae.dyer@wsj.com)