The Supreme Court over in the UK is going to deliver its verdict over the suspension of Parliament by the UK’s Prime Minister Boris Johnson. The announcement is expected to come in at 10:30 am UK time. The decision is going to shape the course of Brexit and it will determine the party with the most amount of power.
A Decsion In Favour Of Prime Minsiter
If the Supreme Court rules against Johnson’s decision, it would be a huge leverage for the opponent. They can throw the prime minister’s no-deal Brexit out of the window. The prime minister’s plan to leave the EU by October 31st may never see the daylight as well.
Remember the Prime Minister is already in a very tight spot. He doesn’t hold a majority in the House of Commons and a Supreme court’s decision against him would push him further in the corner.
A Decsion Not In Favour Of Prime Minsiter
However, if the Supreme Court delivers a verdict in his favour, it would strengthen the prime minister’s position. He would be able to adjourn the parliament again. Strength in John’s position would also make the EU lawmakers nervous as well. The message for them would be very clear, the UK is set to leave the EU with deal or without deal coming October 31st. Although, the UK’s lawmakers are still confident that they still have the ability to stop the Prime Minister from leaving the EU without any deal.
Important Numbers
From a trading perspective, this particular event is likely to elevate volatility for Sterling. The Sterling-dollar pair retraced from 1.2582 (the highest since July 2019) yesterday and at the time of writing this, it is trading below the 1.25 mark. The price is trading below the 100 and 200-day moving averages. This shows that the bears are in control of the price. The near term support is near the 50-day moving average which is trading at 1.2277 and for the uptrend to continue, we need to see the price break above the 100-day moving average which is at 1.2478.
