The British pound dropped against its major peers on Tuesday, after UK Supreme Court ruled that Theresa Mayâs government needs a parliamentary vote to be able to trigger Article 50. The ruling, which decides the future road of the nationâs exit from the European Union, was decided by the majority of the court.
The decision, which was handed down at 9:30 GMT, means that the UK government cannot proceed with departing from the European Union without having an approval from Parliament. However, the British pound was weaker as traders were concerned about another part of the ruling.
The judges also ruled that Mayâs government does not need the consultation of Scottish, Northern Irish, or Welsh legislatures to trigger Article 50. The unanimous decision is likely to allow the UK prime minister to be successful in beginning the formal Brexit process by the end of March.
The British currency, which managed to achieve some gains recently after a speech by May that gave some clarity on the UKâs position on Brexit, might face headwind after todayâs ruling. The ruling will allow Members of Parliament to request additional amendments, which would increase uncertainty towards Brexit.
GBP/USD traded at 1.2528 as of 23:00 GMT on Tuesday, after touching 1.2421 at 12:55 GMT, the pairâs lowest level in two days. GBP/USD opened trading today at 1.2511.
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