The Great Britain pound ended the week as the strongest major currency thanks to the UK Supreme Court ruling about the Parliament’s involvement in the Brexit process.
The court ruled that Britain’s government should consult the Parliament before initiating the exit from the European Union. It is a widely held belief among market participants that the Parliament will push for softer Brexit, easing the impact of the event on the nation’s economy. While markets reacted negatively to the news at first, being concerned about some parts of the ruling, the sterling bounced later. The currency retreated again following the release of the Brexit bill, though it retained significant weekly gains.
Now, traders wait for the next week’s policy meeting of the Bank of England. The event will be especially important because it will be accompanied by the Inflation Report, which will provide updated economic forecasts from the central bank.
GBP/USD gained from 1.2371 to 1.2545, touching the high of 1.2673 during the week. GBP/JPY rose 2% from 141.52 to 144.34. GBP/CHF advanced from 1.2391 to 1.2533, reaching the weekly maximum of 1.2648.
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