Drama in the UK:
The government will have to get the parliamentary approval regarding the implementation of Section 50 and to start the Brexit.
The dramatic decision of the Court adds uncertainty to the process of separation of the UK from the EU and its implications.
As a result, the British pound jumps against the US dollar.
Forex market:
The English pound strengthened against the US dollar by 0.4% and traded at about 1.2236 dollars to the pound.
The Euro rises by 0.15% and traded at about 1.1015 US dollars to the Euro.
The pound continues to lose high due to fears of investors from the effects of the Brexit, and falling this morning against the dollar by 1.2% to £ 1.261 rate of the dollar. It’s the pound 31-year low level versus the US currency.
The US dollar strengthened yesterday and has reached a two months high, as when he broke a significant resistance level, because of the increasing expectations that the Federal Reserve will raise US interest rates by end of the year.
The US dollar strengthened by 1.1% against the Japanese yen.
The US dollar climbed against the British pound by 0.8% to US $ 1.2736 a pound, after earlier it been strengthened exchange of 1.2722 dollars to the pound.
It’s the highest level of the US versus the British currency since 1985.
The pound weakened in the last two days after the head of a British government Theresa May announced on Article 50 of the exit the uk from the European Union, and this will start within a few months.
The US dollar climbed by 0.1% against the Euro of 1.1199 dollars to the euro.
Forex Market:
The Euro weakened by 0.2% against the US dollar to 1.118 dollars to the Euro.
The pound weakened by 0.3% against the US dollar to 1.309 dollars to the pound.
The UK retail sales rose unexpectedly in July.
The warm weather increased the clothing sales and a weakening the pound has encouraged tourism to make purchases in Britain, particularly in luxury stores.
The sales rose by 1.4% compared to June, while analysts viewed that will not be a change from the previous month.
A rise of the UK inflation after the weakness of the pound
The UK inflation has risen sharply than expected in July.
The weakening of the British pound after the referendum, has made the imported products to be more expensive for local buyers.
The consumer price index in Britain rose last month by 0.6%, the sharpest rate since November 2014.
The foreign exchange market:
The Euro rising by 0.1% against the US dollar and was trading around an exchange rate of 1.117.
The pound strengthened against the US dollar by 0.1% and traded at about 1.2936 dollars to the pound.
The trade deficit of the United Kingdom expanded in June to 12.5 billion pounds, versus 11.5 billion pounds in May.
The deficit was larger than forecast which stood at 9.6 billion pounds.
The industrial production in June rose by 1.6% (YoY) and -0.1% (MoM), in line with the early expectations.
The industrial output in June rose by 0.9% on an annualized basis, below the forecast of 1.3%.
The pound fell by 0.5% against the US dollar and is trading at a rate of 1.298 dollars to the pound.
The British currency is at a low of four weeks after earlier this week the central bank began the quantitative easing program.
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