Pound PLUNGES against the euro and dollar after MPs damage investors’ hopes of soft Brexit and leave Britain hurtling towards No Deal
- The pound dropped about 0.5 per cent against USD and EUR after MPs voted
- MPs once again rejected every alternative Brexit plan including a customs union
- The result is a blow to Remainer hopes of forcing the PM into backing soft Brexit
The pound dropped sharply on currency markets after MPs once again rejected every option in a series of Brexit votes.
Sterling fell against both the dollar and the euro as the chance of a softer Brexit appeared to diminish in the wake of the latest Commons results.
In the moments after Ken Clarke’s customs union proposal was rejected by three votes, the pound was at €1.164 and $1.305, a drop of around 0.5 per cent against both currencies.
The results leave the door open to a chaotic No Deal Brexit in less than two weeks if MPs cannot agree a way forward.
The pound fell sharply against the dollar (pictured) in the wake of the latest ‘indicative votes’ in the House of Commons, which once again saw every Brexit option rejected by MPs
Sterling also dropped against the euro (pictured) following Monday night’s round of voting
Earlier in the day the pound had risen as investors hoped the Government might back a soft Brexit, maintaining close ties to Brussels.
Some ministers including Justice Secretary David Gauke had hinted at a pivot towards a customs union if there was enough support in Parliament.
But defeats for both the customs union and Norway-style deal proposals has left the future of Brexit more uncertain than ever.
MPs also rejected proposals for a second referendum which some campaigners believe would break the deadlock in Parliament.
Speaker of the House of Commons John Bercow announces the results on Monday night. The votes have dealt a blow to Remainer hopes of forcing a soft Brexit
Despite MPs rejecting Mrs May’s deal for a third time on Friday, Downing Street has made clear that she intends to to bring it back to the Commons for a fourth vote.
The PM has promised to step down before the next stage of negotiations but her announcement has yet to persuade enough Tory MPs to back her deal.
A letter to the Prime Minister signed by 170 Tory MPs last week demanded Britain leave by May 22 at the latest ‘with or without a deal’.
Nonetheless officials have been given the green light to begin preparations for European elections in May as a ‘contingency’ measure.
The May 23 poll will take place almost three years after the UK voted to leave the European Union.
Senior ministers will meet in Cabinet for five hours on Tuesday to discuss the way ahead, amid speculation about possible resignations or a general election.