The pound against the US dollar grew by 0.4%, rising above 1.2480, amid the fact that the British Supreme Court declared the suspension of the work of the national Parliament initiated by Prime Minister Boris Johnson as unlawful and unreasonable. However, analysts do not expect a strong change in quotes, since the uncertainty around Brexit remains.
Recall that in late August, B. Johnson received the consent of the Queen of England to close the Parliament from September 10 to October 14. He explained his decision by saying that the Cabinet of Ministers needs to present its new agenda and begin to implement the domestic political program. Many lawmakers then accused the prime minister of intending to withdraw the country from the EU on October 31 without concluding an agreement, as well as of misinforming the queen in order to obtain authorization to suspend Parliament.
Back in early September, a Scottish court declared B. Johnson's actions unlawful.
Today, the Supreme Court of Great Britain also noted a truly historic decision.
Eleven judges unanimously declared the suspension of Parliament illegal. At the same time, the court focused on the fact that the prime minister did not provide reasonable arguments for his decision to suspend the work of the legislative body for five weeks with an acceptable norm of several days.
Experts point out that this is an extraordinary constitutional moment and an unprecedented political crisis for the United Kingdom. The country's highest court ruled that the prime minister gave unlawful advice to the queen. In normal times, the prime minister would have to resign immediately.
Joanna Cherry, an official representative of the Scottish National Party, urged B. Johnson "to find the courage to do at least one worthy thing - to resign."
"I accept the verdict of the Supreme Court, although I strongly disagree with it. Britain anyway, under any circumstances, will leave the EU on October 31. I intend to get a deal with the EU on Brexit up to this point. The mood of the Parliament and the courts does not simplify this task at all," said the British Prime Minister, commenting on the decision of the Supreme Court.
According to analysts, despite the decision of the UK Supreme Court, the uncertainty surrounding Brexit remains high, which will greatly limit the ability of the GBP/USD pair to recover. It is still not clear whether the country will exit the EU with or without an agreement on October 31. If it approaches this date without a deal, is it possible to extend the Brexit deadline again?
It is expected that in the near future the GBP/USD pair will continue to trade in the range of 1.2400-1.2500.