Private DCN Private DCN - Sterling

GBP: all eyes on Supreme Court ruling

By Smart Currency January 24th, 2017

There were no data releases of note yesterday but sterling pushed to a fresh five-week high against the US dollar. Sterling is still benefitting from Prime Minister Theresa May’s speech last Tuesday, which provided more clarity on the government’s Brexit plans.

The main reason for yesterday’s strengthening against the dollar was the dollar weakening though. This was driven by President Donald Trump talking about renegotiating long-established trade agreements and other protectionist measures.

At 9.30 this morning the Supreme Court will announce whether the government can trigger Article 50. It’s expected that May will suffer defeat and be forced to seek the parliament’s approval. As May announced last Tuesday that she’d let parliament vote on her Brexit plans anyway, this is less significant now.

However, there are important nuances. The whole process could be delayed if the devolved governments get a say in the matter as Scotland and Northern Ireland voted remain.