Pound wobbles following Supreme Court’s historic Article 50 ruling

THE pound wobbled against the dollar following the Supreme Court ruling that MPs must get a vote on triggering Article 50.

Sterling initially jumped before the Supreme Court decision on the powers of Parliament and Britain's devolved assemblies in upcoming Brexit negotiations, before falling back.

Sterling was trading 0.8 per cent down against the dollar at 1.24 and fell 0.46 per cent versus the euro at 1.16 after the announcement.

Judges voted eight to three that Parliament must vote on triggering Article 50, but Scottish, Welsh or Northern Irish assemblies will not get to veto the process.

Judges decided to uphold the High Court ruling lead by campaigners, which bans Theresa May from using prerogative powers to trigger Article 50.

David Cheetham, XT market analyst, said: "The pound has come under some selling pressure in the wake of the Supreme Court ruling, largely due to the fact that the Government doesn't have to consult the Scottish, Welsh or Northern Irish assemblies before triggering Article 50.

"The appeal itself was rejected, but it still remains likely that Mrs May will meet her self-imposed deadline of beginning the formal Brexit process by the end of March.

"Sterling has been volatile over the announcement."

The pound surged on Monday as investors priced in a defeat for the Government in its appeal against a ruling that forces it to consult with members of Parliament in Westminster before formally triggering EU exit talks in March.

A week ago, the pound surged as Theresa May announced that Parliament would get a vote on the Brexit deal.

Despite recent movements the pound is still down at least 11 per cent against the euro and 16 per cent against the dollar, compared to before the referendum to leave the EU, according to FairFx.

For all the latest reaction to the Supreme Court Article 50 ruling read our live blog.