The pound briefly soared this morning after the UK High Court ruled that article 50 cannot be triggered without the backing of parliament. While the ruling may be reversed when appealed at the start of December, the decision does offer hope to “remainers” that the triggering of article 50 will be delayed, but in the best case scenario, it won’t pass through parliament and the Brexit referendum will have been for nothing.
The latter is still unlikely at this stage as the political backlash could be extreme but still, this ruling does offer hope and this is why we’ve seen sterling spike up towards 1.2450 against the US dollar, while the euro has fallen back to 0.89 against the pound.
Whether these moves can be sustained will likely depend on the details that emerge in the coming days or weeks regarding how MP’s would vote should it eventually be put before parliament. Should it become clear that MPs would respect the referendum result then I expect we’ll see the pound swiftly reverse any gains that the ruling brought.
It seems that Super Thursday started a little early today, with the Bank of England still yet to make its monetary policy announcement and release its quarterly inflation report. Then it’s over to Mark Carney to face the media and following this morning’s ruling, I’m sure there’ll be plenty to talk about.
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