BREAKING NEWS: Brexit No DEAL Agreement With The EU Causes Pound Sterling To Sky Rocket
Pound Sterling rose in early London trading on Wednesday as investors awaited a vote in Britain’s parliament that most expect will see the prospect of a no-deal Brexit defeated.
The pound, which has lurched upwards and downwards in volatile trading this week, has found some support despite Prime Minister Theresa May badly losing a vote on her Brexit withdrawal agreement late on Tuesday.
Britain’s parliament will vote again on Wednesday on whether the United Kingdom should leave the European Union on March 29 without a deal, which most economists say would cause significant harm to the economy.
May has given lawmakers in her party a free vote and investors expect parliament will vote against a no-deal Brexit.
The pound rose 0.4 per cent to the day’s high of 1.3120 dollars at the London open – putting the currency about half way between this week’s lows of 1.2945 dollars and its high of 1.3290 dollars.
Against the euro, sterling was also stronger, hitting 86.020 pence but was below 22-month lows of 84.755 pence touched on Tuesday before hopes for May’s Brexit deal to pass were crushed.
Because of the no deal agreement and the negative impact is causing the british economy the MPs have voted to reject leaving the EU without a withdrawal agreement.
Here is what the prime minister has to say
Theresa May said there was a "clear majority" against a no-deal Brexit but the "legal default" was that the UK would leave without a deal on 29 March if no deal is reached.
MPs will now get a vote on delaying Brexit, said the prime minister.
That vote will take place on Thursday, and if it is passed - and the EU agrees to it - the UK will not leave the EU as planned on 29 March.
There could be a short extension - or a much longer one - depending on whether MPs backed her withdrawal deal "in the coming days", said the prime minister.
That means the government could make a third attempt to get Mrs May's deal through Parliament by 20 March, after MPs voted overwhelmingly on Tuesday to reject it.
Commons proceedings descended into confusion earlier, as the government tabled a motion to prevent the UK from exiting the EU on 29 March without a deal.
Before MPs voted on the government motion, they backed an amendment tabled by Labour's Yvette Cooper rejecting a no-deal Brexit under any circumstances - by just four votes.
This dramatic development led to the government ordering Conservative MPs to vote against its own motion, despite earlier promising them a free vote.
The government motion, as amended, was passed by 321 votes to 278, a majority of 43, reinforcing the message that MPs do not want to leave without a deal.