The GBPUSD is whipsawing after an initial 61-pip spike on the UK Supreme Court ruling that the prorogation action taken against the UK Parliament by the Queen on the advice from UK PM Boris Johnson was unlawful.
“It is for Parliament, and in particular the Speaker and the Lord Speaker to decide what to do next. Unless there is some Parliamentary rule of which we are unaware, they can take immediate steps to enable each House to meet as soon as possible…” the ruling further stated.
By this unanimous judgment of the 11 UK Supreme Court justices, the prorogation action has been declared null and void, paving the way for the UK Parliament to resume sitting and possibly pass legislation to put off a no-deal Brexit.
In his response to the UK Supreme Court verdict which has in effect nullified the prorogation action, the Speaker of the UK House of Commons Bercow has welcomed the decision of the Supreme Court. He is of the opinion that the House of Commons should convene without any further delay.
This judgment has no doubt, added yet another twist to the Brexit tale, with local politics now assuming a bigger role in the entire impasse. The GBPUSD initially spiked to intraday highs of 1.24889, but has retraced quickly to give back most of these gains. This is not an unusual outcome when such news filter out into the marketplace, as traders dissect the news and the implications of such events to their trading decisions.
It is also possible that the Cable is now being pressured by the poor CBO Industrial Trends report, which shows that monthly orders came in at -28 as against the market consensus of -13.