The pound has risen after a top European court said the UK should be able to unilaterally cancel its withdrawal from the EU.
Breaking: Big news as advocate general of ECJ recommends Article 50 can be unilaterally revoked. Would theoretically mean Britain could cancel Brexit negotiations and stay in EU without asking any of other Member States. Non-binding opinion which requires full ruling from judges. pic.twitter.com/Y5qi43zmo8
— Nick Gutteridge (@nick_gutteridge) December 4, 2018
It was trading at $1.2766 against the dollar.
Simon Harvey, FX Analyst at Monex Europe, commented: “Sterling finally shows a flurry of strength ahead of next week’s vote after an EU Court aide suggests that the UK could pull article 50 unilaterally.
This news comes at a time when Parliament is currently battling for further legal advice on the Brexit draft deal, and today’s flash headline on Bloomberg suggests the market is also looking for further guidance. The news itself, however, has already been rejected by May and co. as she suggests the Brexit process will not be delayed further by article 50 being pulled and then implemented again. The likely consequences of this for both the economy and her integrity as a leader would be dramatic. Recently, sterling has been sluggishly trading downwards as option premiums for downside protection tick up. Little has managed to move sterling. Even yesterday’s swathe of dollar weakness, which saw the G10 make some ground broadly against the dollar, failed to prop up the pound.”
However, Prime Minister Theresa May’s spokesman has clarified that the government is not going to revoke its notice to quit the European Union.
The spokesman also said the aide’s comments were not a final judgment.