As of 10:30 this morning, the UK Supreme Court has ruled Boris Johnson’s five-week suspension of parliament “unlawful”. The court has now called upon lawmakers to return to parliament as soon as possible and Johnson will have some big decisions to make upon his return to London. Outside of the political significance, this ruling demonstrates, what does it mean in the currency markets.
So far, GBP has rallied initially on this result. GBPUSD spiked 0.3% whilst GBPEUR similarly jumped 0.25%, topping off around 1.1350 but has since steadied back to previous levels. Although this brief spike seems positive, we must remember that markets are always volatile around key Brexit announcements and events and that the ruling doesn’t actually take us any closer or further from a deal.
The markets are now primed for huge volatility, with potential ranges entering unchartered territory as everything hinges on what comes next. With uncertainty around political outcomes, there is uncertainty in the pound. Get in touch with your account manager to discuss your requirements and the best strategies for trading in such volatile times. It is key to consider downside protection and obtain a full understanding of the impact each scenario can have on your transactions.
Have a great day.