Pound Rallies on UK Supreme Court Decision and Brexit Optimism

The British pound today rallied higher in the early London session after the UK Supreme Court ruled that the proroguing of the UK Parliament was unlawful. The decision provided a massive boost to the GBP/USD currency pair as investors became hopeful that a hard Brexit could be avoided if Parliamentary sessions resume.
The GBP/USD currency pair today rallied from a low of 1.2415 to a high of 1.2503 in the American session and was trading near these highs at the time of writing.
The currency pair extended its sideways trading pattern at the start of today’s session after falling for the last two sessions as investors awaited the Supreme Court’s decision. The release of the positive UK public borrowing data for August by the Office for National Statistics before the court decision triggered a brief rally by the pair. The public borrowing data came in at £5.76 billion as compared to the expected £6.65 billion print. The Supreme Court ruling that Boris Johnson acted against the law when proroguing the British Parliament triggered a huge spike higher by the currency pair. The court ruling drastically reduced the chances of a hard Brexit to the relief of most investors.
The cable fell slightly in the American session despite the release of weak US consumer confidence data for September by the Conference Board. The pair was on a recovery path at the time of writing.
The currency pair’s future performance is likely to be affected by Brexit headlines and US-China trade developments.
The GBP/USD currency pair was trading at 1.2493 as at 17:17 GMT having risen from a low of 1.2415. The GBP/JPY currency pair was trading at 133.78 having fallen from a high of 134.60.

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