With the news that Government are unable to invoke Article 50 without Parliamentary consent, there is a stronger argument than ever that the UK is heading for a soft Brexit. Could there be good news for the Pound in the midst?
The Pound rallied against its major counterparts last week following the Court Ruling on Article 50, markets reacted positively to the news as the prospect of a hard Brexit, or any Brexit at all begin to fade.
Theresa May’s hopes for triggering Article 50 in March have for now, been placed on hold whilst MP’s debate the core strategy for an EU-exit. With Jeremy Corbyn throwing his Brexit stance into the equation Sterling could well find further support in the weeks ahead.
Soft Brexit or no Brexit for Jeremy Corbyn
Corbyn has made clear that Government will not trigger Article 50 without retaining the “Brexit bottom lines”. For Corbyn, this means open doors for the millions of Europeans and continual access to the single market. For May, this is the opposite Brexit she had in mind.
But Corbyn could be the light for Sterling exchange rates, whilst not a favourite Labour leader amongst some, his political policies will ward off any hopes of a hard Brexit.
Hard Brexit or no Brexit
Donald Tusk, President of the European Council has previously made stark warnings that the UK’s exit will be difficult, and in light of the recent developments there could be a significant change in course for Brexit Britain. A snap election could take place for example, which could be Brexit on the backburner indefinitely.
Whilst there could be opportunities for those buying foreign currency with Sterling, Theresa May is planning to appeal the decision later this year which if successful, could see a u-turn from the Pound’s recent highs.