The high court has ruled that Government cannot trigger Article 50 without parliamentary consent, potentially delaying any hopes of an EU-exit in March. The Pound has reacted heavily to the news peaking at 1.11848, up from 1.10815 in the early hours of this morning.
Will the Pound continue to go up?
There is a strong argument now that the Pound could find further support following this mornings news. A number of new outcomes could unravel as a result of this verdict which those buying or selling foreign currency need to be aware of.
Whilst unlikely, Parliament could ignore the Referendum result and decide to keep the UK in the EU. This could send the Pound surging to its pre-referendum level presenting fresh opportunities for those buying foreign currency.
Another potential option is that Parliament could hold a second Referendum asking the public to vote on the terms of Brexit, or a complete reversal on the previous vote. This would also have significant implications for Sterling and would reignite hopes of a stay vote.
In any event, Theresa May cannot trigger Article 50 without Parliament consent which now limits the potential damage that could arise from a ‘hard Brexit’. With over 70% of Parliament supporting a remain vote, hopes of a hard Brexit will likely diminish and a complete, scrutinised plan will have to be be put forward before the UK plans to withdraw from the EU.
Markets will welcome news today and this could be the beginning of further strength for Pound Sterling.