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UK court rules that parliament needs to approve Brexit

The UK government  loses the lawsuit. Parliament has the last word on Brexit, and this complicates matters. Most MPs  were in the Remain camp,  and they will now have a big dilemma. There are two  possible appeals. They have already set a time for an appeal, due in December, between the 5th and the 8th. The court said that the case is justifiable and decided that the government does not have the prerogative to give notice: trigger Article 50.

GBP/USD shoots above 1.24 and reached 1.2450 before tumbling back down, perhaps  a sell-off after the initial rush and also a result of the news about the appeal process.

If this ruling stands, Brexit could be slowed down: a full debate in parliament will probably result in a vote to approve  Article 50: most MPs  are not likely to vote against the will of the people, expressed in a 52% to 48% vote. However, Prime Minister Theresa May wanted the government to control the process and the timeframe. Triggering Article 50 was due for March 2017 with the 2-year time-frame  expiring in early 2019.

BOE Governor Mark Carney’s departure from his job was set to June 2019 just this week. If there is a delay, he might be asked to stay for longer or not to oversee these future turbulent days.

All in all, the ruling creates uncertainty regarding Brexit, at least until the first week of December.

Here is how the move looks on the chart: a quick rush and a return to just a bit above previous levels.


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.