Sterling Rallies On High Court Brexit Decision
Marc Chandler | Nov 03, 2016 07:15AM ET
The UK High Court ruled that Parliament has the right to vote on Brexit for Article 50 is triggered. Sterling had appreciated for four consecutive sessions coming into today. It was trading near $1.2350 in anticipation of the decision and rallied to $1.2450 before running out of steam shy of the post-flash crash high (~$1.2470).
As expected the government quickly said it will appeal the ruling to the Supreme Court. That the losing side would appeal the decision was widely known and the Supreme Court made room in its calendar for just this eventuality.
The $1.2450 area corresponds with a 38.2% retracement of sterling's decline since early-September. Sterling has also stopped short of the two-month trendline, shown in the Great Graphic that was created on Bloomberg. The 50% retracement is near $1.2640, which is a little above the high before the flash crash (~$1.2620).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.