Yesterday morning the Supreme Court delivered its verdict on whether or not the UK government require parliamentary approval before invoking Article 50, creating some large swings between the GBP/EUR exchange rate.
The Supreme Court decided to uphold the High Court’s decision, meaning that Theresa May will need to consult parliament before formally beginning the Brexit process. Many had expected this outcome to result in Sterling strength and initially the Pound did spike upward, but further complications soon weighed on the Pound causing it to drop.
Moving forward the Pound could continue to come under pressure as one of the key announcements yesterday was that the UK government does not need the permission of the UK’s devolved nations before invoking Article 50. Scottish First Minister, Nicola Sturgeon was quick to raise this point and suggested the need for another Scottish Independence referendum.
Sterling came under significant pressure during the last referendum on Scottish independence, and should the matter surface once again it’s likely we can expect to see the Pound soften in value due to further uncertainty on the horizon.
Outside of Brexit related news tomorrow morning could be eventful for Sterling exchange rates as UK GDP figures will be released at 9.30 am tomorrow morning, and the expectation is for a 0.5% through the 4th quarter of 2016.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.