GBPUSD: Sterling Rises After MPs Vote Down No-Deal Brexit

BREXIT LATEST – TALKING POINT

• The British Pound climbed higher following the narrow passing of Amendment A which shot down the idea of leaving the EU without a deal

• Another Brexit vote will now be held in Parliament tomorrow on extending Article 50

• New to Forex trading？ Read up on What Every Trader Needs to Know about the G

Today‘s action in British Parliament focused on the possibility of the United Kingdom departing the European Union without a Brexit deal. MPs voted on Caroline Spelman’s Amendment A and Damian Green‘s Amendment F aiming to tailor the Prime Minister’s Brexit Withdrawal Agreement. PM Theresa May‘s decisive defeat yesterday when the second meaningful vote failed to garner enough support for her renegotiated Brexit deal brought about today’s votes.

Amendment A, which narrowly passed with 312 votes in favor and 308 against, rejects the UK leaving the EU without a Withdrawal Agreement and a Framework for the Future Relationship. On the other hand, Amendment F was voted down with 374 ‘noes’ and 164 ‘ayes’ which would have pushed for a 21-month transition period for the UK to prepare for a no-deal Brexit.

GBPUSD CURRENCY PRICE CHART: 1-MINUTE TIME FRAME (MARCH 13, 2019 INTRADAY)

The GBPUSD pushed higher immediately following the news as the risk of the UK crashing out of the EU without a deal continues to dwindle. Although the results of todays votes were widely expected, the next direction of Brexit remains unclear. MPs will gather at the House of Commons again tomorrow for another vote to extend Article 50. This would effectively delay the March 29 Brexit date currently set as a deadline for the UK to separate from the EU.

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- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter