Sterling just shot up after the Article 50 High Court case ruling
- Author: Darren Santiago Nov 05, 2016,
Nov 05, 2016, 5:53
This boost was supported by the earlier High Court judgement that Article 50 could not be triggered without a parliamentary vote, something which was seen to reduce the likelihood of the United Kingdom ending up with a "hard Brexit".
The battered pound has clawed back nearly 3 percent GBP=D4 this week, rising on a ruling from England's High Court on Thursday that the government needed parliamentary approval to start the Brexit process.
The government has been given the go-ahead to appeal against the ruling at the Supreme Court.
Sterling has fallen more than six percent in October on speculation of a so-called hard Brexit which would see Britain leave the single market and switch to World Trade Organization rules.
Ranbir Kapoor's 'Ae Dil Hai Mushkil' beats Sultan's overseas collection
Ae Dil Hai Mushkil held strong hold on Tuesday and raked in around Rs 13.03 crore, taking the five day total to Rs 66 crore. Innumerable viewers residing overseas are a huge fan of Karan Johar as well as Ajay Devgn.
As the United Kingdom government has pledged to continue its preparations for Brexit in spite of the High Court decision, Brexit-based uncertainty could start to weigh on the Pound once again in the near future.
Shares in European banks - another big source of concern in the Brexit process - gained 1.7%, while United Kingdom midcaps, more geared to the domestic economy than their blue chip peers, jumped 1.5%, significantly outperforming the more globally-focused FTSE 100. The daily spread between the two indexes briefly hit its highest since 2009.
Analysts from Nomura last week laid out research that showed that while 74 percent of the MPs known to have a view supported remaining in the European Union before the referendum, 61 percent of constituencies voted in favour of leaving. The decision came before the BOE said its nine-member Monetary Policy Committee voted unanimously to keep interest rates and the asset-purchase target unchanged, while indicating that accelerating inflation may even warrant tightening policy at some point. The sterling strengthened for a second day versus the euro, gaining 1.6 per cent to 88.77 pence.
A number of traders also stressed that the pound's bounce looked like a short-term correction to the falls of the past four and a half months, which have knocked nearly a fifth off its value. All but four of 60 economists surveyed by Bloomberg predict the BOE will maintain its key interest rate at a record-low 0.25 percent, while a majority of respondents to a separate survey forecast it will raise its inflation and growth forecasts in new quarterly projections released along with the rate decision. Politics remains "the most volatile component in the equation", he said. Relative to the previous meetings, the change is really noticeable.