Finally there is some good news for Pound Sterling. The pound climbed nearly a cent on Friday to enroll its highest week against the dollar since October 2009. The strengthening of the pound was facilitated as the worries eased that Britain would suffer a “hard” exit from the European Union. The ruling from England’s High Court asking for a parliamentary approval to start the Brexit process helped the pound claw back almost 3 percent GBP=D4 this week.
“We’re seeing a bit of a relief rally now that the worst case scenario of a unilateral ‘hard Brexit’ has been deferred, and markets can start focusing on other factors (like) the U.S. presidential election,” said CMC analyst Michael Hewson.
Analyst trust that lawmakers would press for a soft Brexit, which would help the UK to keep trade ties with other European Union states. Most of the ruling lawmakers were in favor of staying in the EU. Against the euro, the pound rose half a percent to 88.67 pence EURGBP=D4. It was up 1.5 percent on the week, cutting its post-referendum losses to 14 percent.