Pound Falls After Belfast High Court Rejects Legal Challenge To Brexit
October 28 2016 - 2:44AM
RTTF2
The pound declined against its key counterparts in European
trading on Friday, as Belfast High Court dismissed legal
proceedings challenging the U.K. vote to leave the European Union
and said Government could trigger Article 50 as planned.
Rejecting the claims by lawyers of the Stormont politicians and
Raymond McCord, Justice Maguire ruled that the consent from
Stormont is not needed to begin Brexit negotiations with
Europe.
Justice Maguire concluded that the actual effect of the process
of change and its impact is still uncertain.
"While the wind of change may be about to blow, the precise
direction in which it will blow cannot yet be determined so there
is a level of uncertainty, as evidenced by the discussion about how
the Northern Ireland land border with Ireland was affected by
withdrawal from the EU," he added.
Further undermining the currency was rising aversion, ahead of
the U.S. GDP tonight that could strengthen the case for the Federal
Reserve to raise rates by the year-end.
The pound showed mixed trading in the Asian session. While the
currency rose against the yen, it held steady against the franc,
greenback and the euro.
The pound fell to a 3-day low of 1.2114 against the U.S. dollar,
from an early high of 1.2189. If the pound extends its downtrend,
it is likely to find support around the 1.19 region.
The pound dropped to 8-day lows of 0.9009 against the euro and
1.2047 versus the Swiss franc from early highs of 0.8945 and
1.2110, respectively. The next possible support for the pound may
be found around 0.92 against the euro and 1.18 against the
franc.
Reversing from an early high of 128.28 against the yen, the
pound edged down to 127.60. Continuation of the pound's downtrend
may see it challenging support around the 125.00 zone.
Looking ahead, German preliminary consumer price index for
October, U.S. advanced GDP data for the third quarter, University
of Michigan's final consumer sentiment index for October and U.S.
rig count data are due to be released in the New York session.
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