Britain is facing one of the most transformative constitutional amendments in recent history. The United Kingdom’s Supreme Court commenced its second day of hearings yesterday. The court case is to determine what party has the right to trigger article 50 – Parliament or Prime Minister Theresa May. Sterling reached a two-month high during the session.
The outcome of the hearing deciphers the speed at which Britain will leave the European Union. Should the Supreme Court rule against the government, it will be up to Parliament to decide when Britain will leave the EU.
November’s High Court ruling was largely in support of Parliament, leaving the chances of government winning in the Supreme Court presumably low.
Brexit has caused much apprehension within Britain, the court case has temporarily soothed some of those concerns. The pound has lifted under the softer onset. For investors, anxieties have circled around the loss of access to the single market.
The polarised vote to leave the EU has caused restlessness within the nation. The idea of a ‘hard Brexit’ is a notion that further unnerved investors. Analysts believe that a more benevolent approach to exiting the EU would help to mollify the market.
Yesterday, the pound rose 0.2 percent, with a high of $1.2775.