The GBP/EUR exchange rate dropped this morning after the Supreme Court released it’s verdict on the governments High Court appeal.
It’s been a volatile day for Sterling exchange rates, after the Supreme Court ruled that the government will require parliamentary approval before invoking Article 50 and formally beginning the Brexit process.
Many within foreign exchange markets had expected to see the Pound rise in the event of this decision as it’s likely to delay the Brexit process, and involve further negotiations meaning that a ‘Softer’ Brexit is likely, but this wasn’t the case as the Pound dropped as soon as the decision was announced before recovering towards the end of the day.
It’s likely that the reason behind the Pounds softening can be put down to the decision to deny devolved governments within the UK the right to vote.
This is likely to lead to another Scottish referendum on independence, as Scotland voted quite heavily as a nation to remain a part of the EU.
Moving forward I expect to see the Pound continue to climb as there is now clarity regarding the UK governments plans moving forward. Certainty usually results in strength for the underlying currency and now we understand the UK’s Brexit plans it may put investors fears at ease.
If you are planning to make a currency exchange involving the Pound and the Euro, 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.