The Supreme Court’s verdict on the prorogation of Parliament is due to be released at 10:30am this morning. A ruling against the government may weigh on the pound, due to increased uncertainty. Alternatively, if the judges decide that Parliament should be recalled, the pound could rally on decreased chances of a no-deal Brexit.
Sterling weakened slightly yesterday as Michel Barnier commented on the current state of Brexit negotiations. He said, “Based on current U.K. thinking, it is difficult to see how we can arrive at a legally operative solution which fulfils all the objectives of the backstop. It is in a very sensitive and difficult phase.”
Boris Johnson travelled to New York yesterday to meet EU leaders at the UN Assembly. Before the meeting he warned not to “expect a ‘New York breakthrough’ on Brexit.” A government spokeswoman has said that in talks with European Council President Donald Tusk, the Prime Minister emphasised that “flexibility” and “movement” from the EU is needed to secure a deal. Following the talks, Tusk tweeted “No breakthrough. No breakdown. No time to lose.”
