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Sterling steadies after Supreme Court turbulence
[LONDON] Sterling steadied against major currencies on Wednesday, pausing after a rollercoaster ride a day earlier that followed a Supreme Court ruling that Britain's government must go through parliament before starting talks to quit the EU.
The pound jumped to five-week highs on Tuesday after the first sections of the ruling were read, but was then hit by a wave of profit-taking to sink as low as US$1.2419. It was trading back above US$1.25 in early deals in London on Wednesday.
That was partly fuelled by investor worries about how Northern Ireland and Scotland would respond since the court also ruled the government does not need to go through the UK's regional assemblies to start Brexit talks.
From here, analysts said, the focus would be on the government's moves to pass the legislation necessary to launch the talks. A bill is expected within days but opposition parties are expected to seek to amend it.
"The big moves in sterling came yesterday and now it is a case of pausing for breath," said Societe Generale currency analyst Alvin Tan.
"What happens in parliament will now be important as there appears to be a push for the government to publish a white paper on its Brexit plans."
Sterling was steady on the day at US$1.2522 at 0907 GMT, holding a touch below Tuesday's five-week high.
It was also marginally firmer at 85.61pence per euro, having touched a three-week peak during Asian trade.