Pound Soars As Court Demands Parliament Vote On Brexit

LONDON, (UrduPoint / Pakistan Point News - 03rd Nov, 2016 ) - The pound jumped against the Dollar and euro Thursday after the High Court in London ruled that parliament must approve the start of Britain's withdrawal from the European Union.

Sterling -- which has tumbled to multi-year low points against its main rivals since Britain voted June 23 for Brexit -- surged above $1.24. However the pound's big jump weighed on London's benchmark FTSE 100 index which has won strong support since the referendum outcome as the weak Currency benefitted exporters.

It stood down 0.5 percent in afternoon trade, while Frankfurt added 0.07 percent and Paris climbed 0.5 percent. The court ruling has "made triggering Brexit a lot trickier and has given sterling a massive shot in the arm", said Neil Wilson, markets analyst at ETX Capital.

"The news sent the pound roaring through $1.24 before gains were pared as markets digest the news -- the fact is no one really knows what the implications of this decision are yet.

" Downing Street said it was "disappointed" at the decision and would appeal, with the case now likely to go to the Supreme Court before the end of the year.

Meanwhile, the Bank of England on Thursday hiked its economic growth forecast for next year, as it froze its key interest rate at a record-low 0.25 percent and left stimulus unchanged. The BoE raised its prediction for 2017 GDP expansion to 1.4 percent from 0.8 percent as early fears of a sharp slump due to the shock of the June Brexit vote failed to materialise.

Ahead of the decision, a closely-watched survey Thursday showed output in Britain's key services sector rose last month despite costs rising at the fastest rate in more than five years. The Markit/CIPS services purchasing managers' index (PMI) hit 54.5 in October, up from 52.6 in September and above analyst expectations of 52.5. A reading above 50 indicates growth.