UK: Supreme Court decision regarding Brexit in the limelight - Rabobank

The UK’s Supreme Court will this week deliberate the appeal made by UK PM May regarding last month’s High Court ruling that only parliament has the right to trigger Article 50 of the Lisbon Treaty, notes Jane Foley, Senior FX Strategist at Rabobank. 

Key Quotes

“In October May had pledged to trigger Article 50 by the end of March 2017.   Although many MPs have indicated that they would respect the outcome of the UK’s Brexit referendum, a majority had favoured the ‘Remain’ camp.  Consequently, the market took the news that PM May did not have the authority to trigger Article 50 as an indication that a ‘hard’ Brexit could be watered down.  The results of the Supreme Court’s ruling may not be made public until early January.  Sterling has adopted a binary reaction to UK political news dependent on whether it favours a hard or a soft Brexit.”