The Pound has been trending higher against a basket full of majors this morning. Brexit developments have been unfolding, with the Supreme Court ruling that Boris Johnson’s prorogation of Parliament was unlawful. Lady Hale gave her judgement, saying that the prorogation was ‘unlawful, void, and of no effect’, that the decision impeded Parliament, and ‘the effect on the fundamentals of democracy was extreme.’
Since the news, many politicians have called for Johnson’s resignation. Labour leader Jeremy Corbyn said Boris Johnson needed to ‘in the historic words, consider his position’. The SNP has also called for Boris to resign, with Joanna Cherry saying: ‘Boris Johnson’s position is untenable and he should have the guts to resign.’ Meanwhile, Nigel Farage, former UKIP leader and head of the Brexit Party has called for Johnson’s chief of staff, Dominic Cummings to resign, Tweeting:
Liberal Democrats leader Jo Swinson also suggested Boris Johnson was ‘not fit to be Prime Minister’.
She said: ‘The court have found what we all knew all along, Boris Johnson has again proven he is not fit to be Prime Minister.
‘This shutdown was an unlawful act designed to stop Parliament doing its job and holding the government to account. Given this verdict, Parliament should be sitting so that we can continue to question the Conservative government on their disastrous Brexit plans.
‘It remains the Liberal Democrats priority to stop no-deal Brexit and to stop Brexit altogether.’
It’s a quiet week for UK data, but other economic events could impact the way the Pound trades against other currency majors.
Against the US Dollar, the Pound could fluctuate when the US July House Price Index is released this afternoon, shortly before the top tier US Consumer Confidence reading for September is out. Economists expect this figure to slip from 135.1 to 1,33.0. Thursday could be another influential day for Pound US Dollar (GBP/USD) movement with the US Advance Goods Trade Balance and Q2 Gross Domestic Product numbers out, followed by Durable Goods Orders and PCE Core August figures on Friday.
This week, comments from European Central Bank (ECB) President Mario Draghi could influence the Euro exchange rate. Weaker-than-expected figures out of the currency bloc at the start of this week–including German manufacturing which dropped to a ten-year low–have done the Euro exchange rate little favour.
Given the political chaos in the UK, the Pound US Dollar (GBP/USD) and Pound Euro (GBP/EUR) exchange rates will likely be driven by poltical developments.