A UK high court's ruling could put Britain's plan to leave the European Union in jeopardy. The court said Article 50, which begins the UK's withdrawal process from the European Union, can't be triggered without a Parliament vote.
"This could make things a little stickier for [UK Prime Minister Theresa May] and maybe there will be more concessions on both sides," said Timothy High, a U.S. interest rates strategist at BNP Paribas, referencing May's hard stance on what's known as Brexit.
The pound rose 1.1% against the dollar on the ruling, which is expected to make its way to the UK's Supreme Court. The pound has been on a downward spiral since the UK's June 23 decision to leave the European Union. Throughout October, the currency stood at a near 30-year low against the dollar.
High said the ruling may also jeopardize May's timeline for triggering Article 50, which was initially set at March 2017.
The negotiations process of the UK's exit from the European Union is set to take two years once Article 50 has been activated.
Meanwhile, the Bank of England left benchmark interest rates unchanged, following its Thursday policy meeting. The central bank cut interest rates to 0.25% from 0.5% back in August, in an effort to calm any negative economic fallout from Brexit.
"This was no surprise that the Bank of England did nothing, left its options open to move either way from here but this is exactly what we expected," High said.
Last week's better-than-expected third-quarter GDP print for the UK calmed fears of a looming economic downturn. The UK's economy grew 0.5% during the quarter, beating economists' forecasts of 0.3% growth.
On that note, the UK raised its 2017 growth forecasts on Thursday, saying the economy should grow 1.4%, compared to its previous August estimate of 0.8%.
"Indicators of activity and business sentiment have recovered from their lows immediately following the referendum and the preliminary estimate of GDP growth in Q3 was above expectations," the Bank of England said Thursday in a statement.