British lawmakers have rejected Theresa May's Brexit agreement for the third time in a 344-286 vote. The United Kingdom now has until April 12 to find a new solution, otherwise, it will be staring into the face of a no-deal Brexit.
The news has already had an impact upon currency rates, with the pound initially dropping to $1.298 but started a slow recovery shortly after.
The pound was off 0.35% to just slightly under $1.30 after the House of Commons rejected the prime minister's bid to force her Brexit agreement through parliament in a two-part vote. It also dropped down to 0.33% against the Euro at €1.1573.
UK government bond prices are also said to have spiked following the parliamentary rejection. The yield on 10-year gilts plunged below 1% as investors sought after the safety of government bonds and gilt futures rallied by more than 30 ticks on the stock news.
It has also been reported that the looming prospect of a general election has deeply unsettled the markets, particularly on the heels of Theresa May's doom-laden statement that parliament is "reaching the limits of the process."
World currency expert Jeremy Thomson-Cook of World First, a foreign exchange company, has Tweeted that he can no longer see the pound recovering until the storm wrought by Brexit has been calmed.
Options are No deal, election or negotiated extension; for now Sterling will look to the first two and will likely pitch around the 1.30 mark until further notice— WorldFirst's Jeremy Thomson-Cook (@WorldFirstJTC) March 29, 2019