Sterling has been pushing higher today as increased clarity over the Brexit talks continues to be taken positively by the market and as traders take profit on Sterling’s recent moves. Commentators have also put the current move down to optimistic hopes that Theresa May’s meeting with Donald Trump this Friday will go well.
Yesterday the Supreme court ruled that the British government must go through parliamentary vote before triggering Article 50, which officially starts the exit negotiations with the EU. This was widely anticipated but the judges gave no mention that parliament would have to go through the devolved parliaments of Northern Ireland and Scotland. This could be a bone of contention moving forward.
As a result, the GBP/USD has pushed up just under 2-cents from yesterday’s low and currently trades at a 6-week high. The GBP/EUR is nearly 2-cents higher than yesterday which is a 3-week high. Tomorrow morning we have important fourth quarter UK growth data, will these numbers continue to impress or will increased costs start to bite?