It’s been through a tumultuous period but the pound shot up following today’s landmark decision in the High Court over Brexit.
The ruling, which means Parliament must vote before Article 50 is triggered, saw sterling shoot past 1.24 US dollars, up nearly 1% on the day.
Theresa May must get go-ahead from parliament before activating Brexit
Three senior judges ruled the Prime Minister does not have power to use the royal prerogative to trigger Article 50 without the prior authority of Parliament.
Neil Wilson, markets analyst at ETX Capital, said: ‘Most MPs are natural Remainers, although they would face intense pressure from constituents to deliver the referendum mandate.
‘It’s made triggering Brexit a lot trickier and has given sterling a massive shot in the arm.’
The initial rise was tempered later when the government announced it was going to challenge the decision in the Supreme Court.
£ spikes, banks rally as UK govt loses in high court over #brexit case…may the appeal battle commence… pic.twitter.com/EWBi4PvWa8
— Caroline Hyde (@CarolineHydeTV) November 3, 2016
The FTSE 250 – which is more domestically focused – also benefited from the High Court ruling this morning rising by more than 1%.
David Page, Senior Economist at AXA Investment Managers, said the potential delay to the Article 50 process raises the possibility that the UK might express ‘regret’ over Brexit.
On the other hand, the FTSE 100, which has been soaring since Brexit, has stooped to a one month low.
It is currently down 0.7pc on the day at 6,797.77.
Jasper Lawler, of CMC Markets, told the Telegraph: ‘The effect of a stronger pound has offset a rebound in oil prices lifting the energy sector and expectations-beating bank earnings in Europe giving a positive read-across to financials.’
But in terms of recoveries the pound’s is only slight if you take the bigger picture into account since Brexit.
That rise in £ vs $ in context since the Referendum #Article50 #brexit pic.twitter.com/lJ6Bdq3IDV
— Mark Broad (@markabroad) November 3, 2016
