UK lawmakers have voted to hypothetically take a 'no deal' Brexit off the table 'for ever' in a night of bruising losses for the government in the House of Commons.
Tonight's votes are aimed at seeking to establish whether the UK parliament should back a 'no deal' Brexit.
The initial motion passed by 312 to 308, a tight victory for 'remainers' and opposition parties, and we are told this outcome is a positive for Sterling as it cements the notion that there is no political appetite for a 'no deal' Brexit to take place.
"A big win for the Pound - majority of MPs choosing economic rationale over party politics = reduction in risk premium. Also increases odds of getting certainty one way or the other (a deal or a push to avoid Brexit altogether).
In response to the vote, Prime Minister Theresa May reminded the House of Commons "the legal default remains that the UK leaves without a deal unless something else is agreed."
The votes come as Pound Sterling is seen staging its largest one-day advance of 2019 to date, and the outcome of the votes will likely cement these gains. The Pound-to-Euro exchange rate is quoted at 1.1695, up over a percent higher. The Pound-to-Dollar exchange rate is up a more significant 1.44% up at 1.3251.
This is such an important moment for the Pound. Effectively renders any scenario of a disorderly decline in GBP/USD as null. Won't necessarily see GBP rally. But should offer strong support for the pound going forward.
Sterling today swung from losses to gains ahead of the votes today in the British Parliament that was expected to reject the disorderly route of leaving the EU without a comprehensive trade agreement.