The Supreme Court ruled that the decision of Boris Johnson to prorogue Parliament this month lacked reasonable justification, strengthening the pound. However, the Pound sterling has still been under fresh pressure on rising concern over the Brexit limbo. The PM Boris Johnson told MPs on Wednesday that he would not commit to seek for a Brexit extension, calling it the surrender act.
"UK politics remains the centre of attention in sterling markets. While the pound was initially lifted by the Supreme Court ruling, it has settled lower again on market perceptions that uncertainties about outcomes remain high and all possibilities are still on the table” says Hann-Ju Ho, Economist with Lloyds Bank.
The GBP/USD reached the highest level at 1.24984 after the release of the Supreme Court decision but stumbled to the lowest level at 1.23442 on the next day 25th September. There has been no sign that the pound sterling will gain its rising momentum and has been still below the level before the Supreme Court’s decision.
With a break of the 1.23 mark, further momentum could carry the Pound lower against the US Dollar, with the next key support sitting at the 1.2230 area. The deadline for Brexit is on the 31st October, which Boris Johnson wishes to stand by.