The British pound rose to a four-month high against the euro after the Supreme Court ruled that Boris Johnson’s prorogation of Parliament was not only illegal but also invalid.
Conor Campbell, a financial analyst at Spreadex, commented on the day’s developments following the ruling:
Celebrating Boris Johnson’s recent defeat, his short Prime Ministership so far has seen him turn a blind eye to repeated failures in hopes of securing a ‘people versus parliament’ election. The pound soared on Tuesday.
“The Supreme Court has ruled that the Prime Minister’s prorogation of Parliament was a cynical and unlawful act, as was clear to many, paving the way for Parliament to resume on Wednesday. can re-enter the heart-wrenching Brexit rollercoaster rather than sit on the sidelines as Leave and Remain sides battle over the fate of the county.”
“So far, undeterred by the looming headache, the currency has appreciated 0.4% against the dollar, allowing cable to cross $1.2487. Meanwhile, against the euro, the pound has gained 0.3%, ending the four-month It has returned to its all-time high of 1.1342 euros.
“Prime Minister Johnson also expressed his displeasure with these results, with the FTSE falling 0.6% in the face of a rising pound. The UK index is currently trading at 7,280, the lowest level in two weeks since Monday’s trading session. It didn’t help that mining stocks and oil stocks were all in the red.
“The situation across the eurozone was mixed. The DAX, which is still nursing its wounds after yesterday’s terrible show Manufacturing PMI, fell 0.2%, while the CAC was unchanged at 5625. Meanwhile, the Dow Jones is in post-Fed/pre-trade negotiation limbo and has climbed 0.1% to hold on to the 27,000 mark.
It is likely to be a symbolic rather than a real loss for Boris’s camp, but the due process preserved will nevertheless prove to be a test of the prime minister’s fast-and-loose populist modus operandi. This is yet another addition to the Prime Minister’s list of defeats.
Elsewhere in market and macroeconomic news, we also provide the latest updates, including: Supreme Court judgment, Thomas Cook collapse (LON: TCP), ECB stimulus, London Stock Exchange (LON: LSE) bid, Lloyds Banking Group PLC (LON: LLOY), Joe Johnson ‘s resignation, Hilary Benn’s Brexit Delay Bill, Barclays (LON: BARC) and Deutsche Bank (ETR: DBK).
