Pound to euro exchange rate: Sterling SLIDES after court ruling on Brexit Article 50
Pound sterling has dived against the euro after the Supreme Court ruled Brexit’s Article 50 must be submitted to a parliamentary vote.
Economist: Brexit negotiations are going to be TOUGH
The Supreme Court this morning delivered its ruling on the Article 50 case surrounding Brexit.
Eight judges leaned in favour of campaigners, handing the Brexit decision over to parliament for a vote on whether Article 50 should be triggered.
Article 50 of the Treaty of Lisbon contains the rules for exiting the EU and the Prime Minister has given a deadline of March 2017 to invoke it.
But the court’s ruling means Theresa May must ask MPs and peers before invoking it.
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The ruling has caused the pound to slide against the euro after it reached a weekly high of €1.17 just prior to the decision.
Sterling has dipped to €1.16, still markedly higher than its low of €1.14 over the past seven days.
The exchange rate was boosted last week after Mrs May’s Brexit speech on Tuesday.
It was further bolstered on Thursday in the wake of comments from the European Central Bank (ECB) surrounding the Eurozone.
The ECB decided to leave rates unchanged despite a rise in inflation, causing a sell off of the euro and a subsequent spike in sterling.
Today the pound is rallying around the €1.16 mark, encouragingly higher than its monthly low of €1.13 but falling short of its highest level during the same period of €1.18.
It’s been a similarly volatile month for the pound against the United States dollar.
The rate has dipped to $1.24 after falling in the wake of the Supreme Court ruling this morning.
The Brexit referendum confirms that uncertainty is unambiguously GBP negative
Experts say it’s the uncertainty which now ensues around the Brexit decision that explains the volatility of the pound against the world’s major currencies.
Viraj Patel from ING in London said sterling doesn’t bode well with uncertainty.
The analyst told poundsterlinglive.com: "Amendments and blockages by opposition parties to any Brexit bill proposed by the government will only slowdown the process of the UK leaving the EU.
“This will prolong uncertainty; price action since the Brexit referendum confirms that uncertainty is unambiguously GBP negative.”
