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Pound Recovers After Parliament’s Brexit Deal Vote

Pound Recovers After Parliament’s Brexit Deal Vote

The pound rallied on Tuesday in its biggest gain since mid-August, after a British government lawyer said that Britain’s final exit deal from the European Union should be subject to parliamentary approval. Theresa May has refused to let parliament vote on triggering the process of leaving the EU and in a High Court proceeding this week, government lawyers have insisted that this refusal is legal.

However, James Eadie, a UK government lawyer also told the High Court that the final deal with Brussels, which will be negotiated over two years after Article 50 is triggered, is “very likely” to be subject to parliamentary approval. During a court hearing as to whether Theresa May could trigger exit without parliament, Mr. Eadie stipulated, “The view within government is that it is very likely that this treaty will be subject to ratification process in the usual way. Most of them are”.

These comments led the pound to rise in value by 1 per cent as traders became more hopeful that Parliament would block a Brexit deal that did not include favourable trading with the EU. The value of the Sterling has fallen over 6 per cent in the last two weeks after government ministers at the Conservative party conference signalled that they would be prepared to leave the EU without access to the single market.

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