UK Supreme Court Votes No – What Does It Mean for Brexit?
Skerdian Meta • 2 min read
In December, the UK High Court ruled against the UK government triggering Article 50, which is the final act to leave the European Union. That left the ball to the UK Supreme Court.
The final ruling was announced a while ago and as widely expected, Brexit will have to go through parliament first. Now, it´s the MPs who will have the right to trigger Article 50.
But what does this mean for Brexit?
First of all, this was sort of expected and Theresa May already promised to take Brexit to parliament, but only after she triggered Article 50. Now, Brexit has to pass the Commons vote before Article 50.
The first reaction to the news is positive, which explains the GBP jump. Brexit will have to take the vote of the majority of British MPs, who actually were against it from the beginning.
The 100 pip wobble after the ruling shows uncertainty.
This is supposed to be positive for the Pound and it might add some more cents to GBP pairs in the coming days, but I don´t think there is a chance to reverse Brexit.
Most of the MPs have announced that they will vote to trigger Article 50, which is only sensible since that´s what the British public voted for in the referendum. So, any further jump we see in the coming trading session/days will be a chance to open a long term sell forex signal.
On the other hand, this might as well take a dangerous path and place the UK economy in a downward spiral if the politicians mess it up for some political gain and postpone triggering Article 50 for who knows how long.
That would be the worst that could happen in this scenario because it will increase the uncertainty even further and we know that money doesn´t like uncertainty. So, in my opinion, it´s either bad or worse for the GBP after this latest retrace is over.
By the way, the ruling didn´t include the regional governments, but I´m sure they will have their say soon enough. In fact, be ready for Sturgeon to ask for another Scottish independence referendum.