The UK Supreme Court ruled in a 8-3 vote that an act of Parliament is required in order for the May government to trigger ‘Article 50’ and formally begin the UK’s withdrawal from the EU.
The court effectively rejected the arguments put forth on behalf of Theresa May’s government, which wanted to trigger Article 50 – formally putting the EU on notice of the UK’s intention to withdraw from the union – without requiring a parliamentary vote.
However, it was a partial victory for May as the court also ruled that the government does not need to get the consent of the devolved governmental bodies in Scotland and Northern Ireland.
The ruling effectively adds more uncertainty to the Brexit process, and to when (and if) it will actually go ahead.
The currency markets reacted rapidly, with the benchmark GBPUSD – hovering just above the 1.250 level most of the morning – dropping about half of a percent to the 1.246 level after the ruling was announced, in heavy trading volume.