As expected the government have lost its appeal in the Supreme court against a ruling that will make it necessary to consult parliament before formally triggering Article 50, and starting the process of talks with the EU. The court ruled by a majority of 8-3, and the Pound had rallied slightly against the US Dollar and Euro as a result.
Any gains are likely to be limited however, as the decision was widely expected and the currency markets had already priced in a defeat for the government. The fact that the government had already conceded that Parliament should be consulted makes the decision a bit of a non-event. Clients looking to convert Sterling to other currencies should consider taking advantage of the gains, as we are likely to be entering a period of significant volatility for the Pound once negotiations begin.
Within a few minutes of the announcement, gains are already gone and the rate has dropped back to where we started the day at around €1.16 vs the Euro.