The pound has found new support following the High Court ruling yesterday that Parliament must be consulted before Article 50 can be invoked. This decision has far reaching implications for Britain and its constitution and also the pound. One of the reasons the pound has been so weak in recent weeks is because of the stance Theresa May has taken that suggests a hard Brexit and one that would take Britain out of the single market.
This ruling makes this kind of exit considerably harder for Theresa May to undertake as many MPs would prefer a softer Brexit and will insist on single market membership when consulted. The government are now taking the case to the Supreme Court for appeal so expect more fireworks in early December when space has already been allocated to hear it.
Clients buying Euros with sterling have also been given a boost following comments from Mark Carney who suggested interest rates in the UK could either go up or down. This suggestion that there could be a rate hike has also given the pound a huge boost and it should keep the pound supported in the coming weeks.
Data is light from the EU today with European Producer price inflation numbers. As far as GBP EUR is concerned politics will continue to be the driving force for this pair.
Clients who are holding sterling are seeing a very volatile period at the moment which is unlikely to change any time soon. The Brexit jitters are keeping the pressure on the pound but there are some better opportunities coming through. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on firstname.lastname@example.org