Parliament has, as expected, voted to postpone Britain's exit from the European Union for three months, subject to MPs approving the Prime Minister's withdrawal proposal.
Should they not, then the government will seek “a more substantial extension”.

The motion was passed by 402 votes in favour versus 202 against.

Critically, a spokesman for the PM reportedly also said she had committed to bringing forward changes to the law in order to change the current expected date of Brexit on 29 March.

Yet the pound reacted by falling against the euro and as of 1925 GMT was down by 0.67% to 1.1696.

According to Chris Beauchamp at IG, the result had been as anticipated by traders, but questions over the PM's ability to remain in power and whether that resulted in a general election could undermine the benefits for sterling from a 'no deal' being avoided and replaced by a soft Brexit scenario.

“The vital element is time, time to see if the Withdrawal Agreement can get through on the third try (or even, as rumours suggest, the fourth), and if not, to work out a new approach that will mean the EU can grant the UK a much longer extension,” said Beauchamp.

“[…] Questions however will be asked whether the PM can cling on much longer however, and whether that leads to a general election. Much of sterling's rally has been built on expectations of no deal being avoided and a soft Brexit resulting, or even a second referendum, but a general election would threaten to undermine these assumptions.”

Reacting to the news from London, the European Union's chief Brexit negotiator, Michel Barnier, said he was “determined to defend EU interests and to build an ambitious EU/UK future relation as soon as possible.”

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