While the Supreme Court decision won’t prevent Brexit from happening, it has perhaps increased the chance that Theresa May’s timeline for triggering Article 50 will slip and/or that there could be more Parliamentary scrutiny. Meanwhile, the announcement that the Government will publish a “white paper”, and the resilience of the GDP figures, have helped the pound post further gains.
Markets seem to have welcomed the possibility that it will provide, at least some, more clarity about the Government’s plans. The sterling trade-weighted index rose by just over 2% over the past week. And the pound appreciated against the dollar by more than implied by relative interest rate expectations - although this may also reflect some pull-back in the US dollar following Mr Trump’s recent claims that the dollar is too strong.
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