ECJ Rules UK Can Cancel Brexit

The European Court of Justice has confirmed that the UK can still legally cancel Brexit as long as it is seen as the right thing to do and the government is acting in good faith.

The result of this announcement saw the pound rise today up 0.55% to $1.2795. Currency sensitive stocks (i.e. FTSE 100) where profits are earned overseas and brought back into the UK therefore fell.

As MPs get ready to vote on the Brexit Deal next week, they will be intense ‘lobbying’, particularly for Mrs May and the House to back the deal by satisfying enough MP’s to support the draft deal for a second time.  If they do not we could see the pound fall back to $1.25 by the end of the year if the deal is voted against, resulting in FTSE 100 rising.

In addition, with huge opposition to a deal, there will likely be more nerves in markets, which could even see a vote of no confidence or a general election or even another referendum again possibly weakening the pound even further and FTSE 100 up.