The Pound is falling being influenced by the Brexit news. Overview for 24.01.2017

Any references to the Brexit, regardless the details, cause sales of the GBP/USD pair.

The British Pound is getting significantly weaker against the USD on Tuesday. The current quote for the instrument is 1.2439. Before that, the Pound had been growing actively for five consecutive trading sessions; today’s sales started from the highs of mid-December.

So, the Supreme Court of the United Kingdom held that the Prime Minister wasn’t entitled to launch the procedure of the country’s exiting the European Union without approval of the parliament. Theresa May said that she counted on support of the MPs, but it’s quite clear that negotiations would take some time. May was planning to start the Brexit in two months, in spring 2017. No one is interfering with the document preparation, but the MPs might as well make the Brexit procedure more complicated by presenting additional terms and conditions.

At the same time, the Supreme Court made a decision that the United Kingdom wouldn’t require approvals from the Scottish and Northern Irish Houses of Assembly for exiting the EU.

However, the decision relating to Theresa May’s powers wasn’t unanimous: 8 votes “for” and 3 votes “against”.

Being influenced by this news, the Pound skyrocketed at first, but then plummeted. There is nothing positive in the news: investors included all possible complications of the Brexit in their long-term planning, most important economic tools are working, the fiscal program will provide additional support to the country. Once the United Kingdom made a decision to exit the EU, the time delay of the Brexit won’t change anything.

RoboForex Analytical Department