The pound has risen the most since August against the dollar after the Government announced it cannot trigger Article 50 without parliament approval.
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On Tuesday morning, campaigners have won their High Court battle against Theresa May to prevent her using executive powers under the royal prerogative to start the process of leaving the EU.
Sterling rose by 1 per cent against the dollar trading above $1.24 in the immediate aftermath of the ruling.
That's the first time its broken above $1.24 in three weeks.
The pound also hit a one-week high of 89.135p per euro after the decision was announced.
It quickly lost its earlier gainst trading at $1.23 against the dollar by 10.20 am.
“The fact that the Government has lost this legal challenge indicates that they will need to seek Parliamentary approval and not simply be able to railroad through Article 50 implementation,” said Ned Rumpeltin, the European head of foreign-currency strategy at Toronto Dominion Bank told Bloomberg.
“Naturally, that keeps the debate alive - and with it hopes that the UK will be able to pull back from the brink.”
Howevever, the Government has already been given the go-ahead to appeal the court ruling that MPs must vote before Britain can leave the EU.
The ruling comes only two hours before the Bank of England announces its latest monetary decision,
The Bank of England is expected to reveal new economic forecasts showing the biggest overshoot of its official 2 per cent inflation target in the independent central bank’s modern history.
