Pound Boosted by Unexpected Advice
An unexpected piece of legal advice has helped to boost the Pound Sterling in London trading. The advocate general of the European Court of Justice said earlier today that the British government has the unilateral right to withdraw its notice of intent to leave the European Union. Analysts say that while the advice is not binding, and though the prospect is somewhat far-fetched at this stage of the game, it has helped to improve sentiment for the Pound, nonetheless. Theresa May, the British Prime Minister, is still planning to move ahead with debate plans in the British Parliament. Currency strategists still believe that it will be an uphill battle for Ms. May to get approval for her Brexit proposal.
As reported at 10:26 am (GMT) in London, the GBP/USD was trading at $1.2812, a gain of 0.71% and off the session peak of $1.2840; the low for the trading day was recorded at $1.2720. The EUR/GBP was trading lower at 0.89 Pence, a loss of 0.25%; the pair has ranged from a trough of 0.88899 Pence to 0.89449 Pence.
Hope Still High for Soft Brexit
Some of the Prime Minister's opposition party members have suggested that a second Brexit referendum should be considered. Critics challenge that premise, however, saying that a number of dire developments would have had to first occur for a second referendum to take place. Markets are still pricing in a successful Brexit, but analysts caution that that could all change if the Prime Minister can't get the backing she so desperately needs.