GBP exchange rates fluctuate after Supreme Court decision

Philip McHugh September 25th 2019 - 2 minute read

The pound fluctuated yesterday as the Supreme Court ruled Boris Johnson’s prorogation of parliament unlawful.

Sterling has given up those gains this morning however, with GBP/EUR down to €1.1310, GBP/USD sliding to $1.2436 and GBP/CAD drifting to C$1.6494. GBP/AUD and GBP/NZD are trading at AU$1.8350 and NZ$1.9660 respectively.

GBP could experience volatility today as parliament reconvenes.

What’s been happening?

The pound initially strengthened yesterday as the Supreme Court delivered its decision on the prorogation of parliament.

As the move was deemed unlawful, parliament will be reconvening this morning.

Movement in other major currencies was limited, although the euro did come under pressure as the German IFO business expectations index unexpectedly deteriorated in September.

Meanwhile, the New Zealand dollar strengthened overnight as the Reserve Bank of New Zealand (RBNZ) delivered its latest interest rate decision.

The central bank opted to leave interest rates unchanged, but did indicate that further stimulus may be required in the future.

What’s coming up?

According to Lloyds Bank: ‘Following yesterday’s UK Supreme Court ruling that the prorogation of parliament was illegal the House of Commons is set to reconvene today. PM Johnson is flying back from New York to attend.

Media reports are predicting a lively session as opposition leaders have called on the PM to resign.

However, the consensus is that Labour leader Corbyn will not call for a vote of no confidence in the PM today.’
UK data is very limited today, with only the CBI reported sales report out at 11:00. Another negative reading could weigh on the pound.

Meanwhile, the euro could fluctuate in response to speeches from key ECB officials. Any cautious commentary about the Eurozone’s economic outlook could be EUR-negative.

The only notable US data scheduled for publication today is the nation’s home sales report. If home sales improve as expected the release could lend the US dollar some support.

Written by
Philip McHugh

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