Pound Surges Further On Brexit Ruling, US Vote Fears

LONDON, , (APP - UrduPoint / Pakistan Point News - 04th Nov, 2016 ) - Britain's pound leapt to $1.25 on Friday, one day after judges ruled London needed parliamentary approval to trigger Brexit, as the Dollar and world stocks were rocked by US vote fears.

Sterling hit a level last seen on October 7 as Prime Minister Theresa May told European leaders that her March deadline for triggering Brexit negotiations "remains unchanged" -- despite growing worries that the ruling could delay Britain's EU exit.

Meanwhile, official data showed that the US economy added a solid 161,000 jobs in October while the unemployment rate fell to 4.9 percent. "The High Court ruling has introduced a whole new set of political uncertainties," Rabobank analyst Jane Foley told AFP.

"However, since most of these are seen as reducing the chances of a bitter divorce from the European Union's single market, the pound is better supported. "While US labour data has brought a diversion, the dollar is also pre-occupied by politics.

A Trump victory on November 8 could send the pound soaring." Trading floors around the world have been plunged into turmoil this week as Democrat Hillary Clinton's lead over Republican Donald Trump has been slashed days before the November 8 election.

Meanwhile Thursday, Bank of England governor Mark Carney warned that the ruling for a parliamentary vote on Article 50 was part of the "uncertainty" arising from Brexit, after the institution held British interest rates at 0.25 percent.

"It is a sign of just how fearful investors are that the pound, the market's most persistent victim in the past few months, has been allowed to graze $1.25 against the dollar," Spreadex analyst Connor Campbell added.

"Of course, sterling is still benefiting from the Article 50 ruling and Bank of England inaction from Thursday; however, that only carried it so far ... suggesting that this extra burst of energy is stemming from concerns over which way America will vote next week."