Great Britainâs pound rose on Friday to its best level in four weeks after the high court in the UK ruled that the government cannot move ahead with Britainâs exit from the European Union without a parliamentary approval.
Thursdayâs court ruling raised investorsâ speculation that the hard Brexit scenario, in which the UK would fully leave the European Union and its single market to have complete control over its borders and immigration laws, is now less likely than ever before. The scenario that would cause havoc to the UK economy will now face resistance from law makers whose majority opposed leaving the European Union in Juneâs referendum.
The pound was further supported by the Bank of Englandâs decision to keep interest rates unchanged on Thursday while raising its growth forecast for 2017 to 1.4% and increasing its expectation for inflation rate in the same year to 2.75%.
The rise of the British pound had a positive base earlier in the week after a statement from Mark Carney showed that the remaining length of his stay as the governor of the Bank of England is an additional year, during which he will work on facilitating the process of the British exit from the European Union.
EUR/GBP traded at 0.8878 as of 18:55 GMT on Friday after touching 0.8857 at 17:45 GMT, the pairâs lowest level since October 7. EUR/GBP started the week at 0.9013 before rising on Tuesday. The pair then maintained its gains for Wednesday before its fall started around 12:00 GMT on Thursday.
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