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Pound Pares Losses After UK Lawmakers Vote Down PM May's Brexit Deal

Published 01/15/2019, 02:24 PM
Updated 01/15/2019, 02:44 PM
© Reuters.

Investing.com – The pound was down Tuesday but off its lows after UK Prime Minister Theresa May's Brexit deal was voted down by a hefty margin.

GBP/USD fell 0.16% to $1.2842 following the outcome of the vote. It was down close to $1.27 before the vote, but pared losses following the large defeat, with many perhaps betting that Brexit will be delayed or even scrapped.

The withdrawal deal, which sets out the terms of the U.K.’s exit from the European Union, received 202 votes for and 432 against. The no votes included 118 Conservative Party rebels.

Just after the vote, Labour leader Jeremy Corbyn tabled a motion of no confidence in the government. No confidence would trigger a general election, but May has retained key support from the 10 members of Northern Ireland's Democratic Unionist Party.

Some have suggested the heavy margin of defeat could either delay Britain’s March 29 departure date or bring about a second referendum that could end up cancelling Brexit.

The government has until Jan. 21 to propose another way forward.

The EU is ruling out a special summit or the reopening of the Withdrawal Agreement, the BBC reported.

JPMorgan recently highlighted a range of options could be put forward, including an extended stalemate, second referendum and even no Brexit.

Ahead of the vote on May's deal, U.K. lawmakers had the opportunity to reshape the deal by voting on a series of amendments, which were reduced to one from four.

Conservative MP John Baron's amendment to give the U.K. the right to terminate the Northern Ireland backstop without the agreement of the EU was defeated by a majority of 576.

Latest comments

nice!
strange moves by GU, BEARS do not join party of uncertainty. GU suppose to be riding bears with such voting results. strange move for traders
I don't think the U.S can help as of now. We are focused on the trade war with China. China keeps violating trade agreement and have aggressive tendencies on U.S market shares
America will support snd defend our British compatriots by offering a better trade deal with no strings attached. Let the elites in Brussels *****the EU.
the whole reason for this Brexit was the fact that the EU was controlling the borders instead of the countries themselves. This lead to Nigel Farage's start of brexit. If brexit occurs most companies would choose the Union instead of the Britain. Multi-Corporation in Britain would prefer paying the EU taxes instead of paying UK taxes+ EU tariffs if the UK is out of the Union.
Since the EU is sooo stubborn of changing the deal the negotiated its a bad deal for the UK so luckily they turned it down!I think the EU needs the UK more than the UK needs the EU
The starting point for a strong sell
Theresa May is one tough cookie. Let's see how the U.K lawmakers will decide their fate of their country.
Pm lost by more than 200 votes, isn't it suppose the GBP to fall?
Not really. The deal with EU was rejected - The withdrawal continues - That sustains the stability of the GBP. in other hand in case of another referendum, it will make the GPB go down. All britain's banks are creating chaos if Brexit stops.
Fair enough! So the GBP will drop if it took a different turn. (if the UK remains in the EU)
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