Investing.com - The pound moved higher against the U.S. dollar and the euro on Wednesday as investors awaited the U.K. government’s bill to trigger Article 50 and begin the formal process of exiting the European Union.
GBP/USD climbed 0.53% to 1.2586, the highest level since December 14, up from Tuesday’s close of 1.2519.
On Tuesday, Britain's Supreme Court ruled that the government will need to seek approval from parliament in order to trigger Article 50 of the Lisbon Treaty and begin two years of Brexit negotiations.
The court also ruled that the government does not have to consult the devolved administrations of Scotland, Wales or Northern Ireland, removing a possible hurdle to Brexit.
Government sources have indicated that the bill to trigger Article 50 could be rushed through by Thursday.
British Prime Minister Theresa May has said she intends to invoke Article 50 by the end of March, but the ruling means the government’s plans are now open to scrutiny from MPs, the majority of whom had wanted to remain in the EU.
The pound also pushed higher against the euro, with EUR/GBP down 0.26% to 0.8548.
Gains in the pound pressured the dollar lower, with the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, sliding 0.21% to 100.06.
The index fell to lows of 99.88 on Monday, its weakest level since December 8, amid concerns over a lack of clarity on President Donald Trump’s economic policies and fears that his protectionist trade stance could hit corporate profits and act as a drag on growth.