Moments ago sterling did what it has been doing so well these past few months, it tumbled by as much as 50 pips after the UK government won a Brexit suit in a Northern Ireland court: a Northern Irish judge rejected a pair of challenges to the Brexit process, removing at least one obstacle to Prime Minister Theresa May’s plan to begin severing ties with the European Union by the end of March.
The Northern Irish High Court ruled that lawmakers don’t need to hold a vote to start the two-year countdown to Brexit. The judge also rejected a challenge based on Good Friday Peace Agreement.
But the court also said that it would defer to English courts on the wider issue of whether Prime Minister Theresa May and her ministers have the authority to invoke Article 50 of the EU Lisbon Treaty, the mechanism by which a nation can leave the bloc, without the explicit backing of the British parliament.
Reuters adds that Northern Ireland rights activist McCord will appeal the high court ruling to the UK Supreme Court, however according to ING analyst Petr Krpata, the decision reduced the probability that article 50 won’t get triggered, Bloomberg reported.
In the immediate aftermath, GBP/USD dropped 0.32% to day low of 1.2125 while EUR climbs to 0.89941 against the pound in sharp moves. GBP/USD next support at 1.2118; EUR/GBP resistance at 0.9027. Cable now trading -0.21% at 1.2140; EUR/GBP +0.33% at 0.89874.