Sterling rallied against all major currencies during today’s trading session after England’s High Court ruled that the British government will require parliamentary approval to trigger the process of exiting the European Union.
The currency was buoyed even further after the Bank of England voted in value of keeping interest rates on hold, with all 9 members of the Monetary Policy Committee in favour of the decision.
Today’s move has thrown a spanner in works of UK Prime Minister Theresa May’s plan to invoke Article 50 next year towards the end of March, and favours hopes of softer Brexit which many still hope for, particularly those that are hoping for a stronger Pound.
Sterling has been under immense pressure in recent weeks and lost around 5% through October after May announced her plans of a March 2017 initiation of the Brexit process, after dropping heavily after the initial Brexit vote back in June.
Many financial analysts have the GBP/EUR pair forecasted to continue to fall throughout next year with parity considered a possibility by some major financial institutions. At current levels we’re still some distance from those levels and it’s difficult to tell which way the GBP/EUR pair will move as Sterling is currently driven by sentiment rather than economic data. You can get in contact with me if you would like to discuss forecasts in further detail.
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