Pound Bounces Around $1.25 After U.K. Supreme Court Rejects Government's Brexit Appeal

The pound was sent on a rollercoaster ride in Tuesday morning trade after the U.K.'s Supreme Court ruled that the government can't trigger the Article 50 that starts the Brexit process without approval from parliament. The court also said Prime Minister Theresa May won't have to ask the devolved governments -- Scotland, Northern Ireland and Wales -- before kicking off the exit negotiations. Sterling initially rose to $1.2534 after the decision was announced, but quickly turned lower to trade at $1.2475. The pound exchanged hands at $1.2536 late Monday in New York. "We have seen the initial move for sterling mainly towards the upside, but as the dust settled, we have seen the sterling giving up all those gains," said Naeem Aslam, chief market analyst at ThinkForex, in a note. "This is mainly because the market believes that Brexit will move forward now. Moreover GBP was pricing in regionalized government being consulted and the Supreme Court has said that they do not need to be involved in," he added.