The result has sent shockwaves through the markets with both the Euro and Dollar plummeting.The euro has fallen against sterling from €1.1515 to €1.1451. Whilst the US dollar dropped from $1.3163 to $1.3080.
MPs voted 321 to 298 against Yvette Cooper’s amendment.
The amendment would have given Parliament control over the Brexit process if Theresa May fails to secure a deal by February 26.
MPs would have been able to vote on delaying Brexit to the end of the year and preventing a no-deal exit under the terms of the Bill – although the Labour leadership said it would seek a shorter extension to Article 50.
Following a series of amendments being rejected one after one by parliament the pound continued to fall after investors continued to threaten over the UK crashing out of the EU on March 29.
The amendments rejected included a cross-party amendment, tabled by Labour’s Rachel Reeves, which would have required the Prime Minister to seek an extension of Article 50 if no deal had been reached by February 26.
In addition, MPs rejected a bid by Jeremy Corbyn to force a debate on Labour’s Brexit plans.
Meanwhile in a boost to investors the pound did see a brief rise after MPs approved a bill which does prevent the UK leaving the EU without a Withdrawal Agreement.
The cross-party plan, headed by Tory Dame Caroline Spelman and Labour’s Jack Dromey, won by 318 votes to 310, majority 8.
It “rejects the United Kingdom leaving the European Union without a Withdrawal Agreement and a Framework for the Future Relationship”.
Currencies did continue to fluctuate throughout the tense vote in parliament, and did surge a little following the news Theresa May will now go back to Brussels to re-negotiate the deal, with the euro climbing to €1.1435 and dollar to $1.3083 against the pound.
The Prime Minister was handed a mandate from the Commons to reopen the Withdrawal Agreement which she agreed with the EU last November and seek to secure changes to its controversial backstop provision.
Mrs May secured the backing after MPs voted by 317 to 301 in favour of a proposal from the Chair of the 1922 Committee Sir Graham Brady for her to try to replace the backstop with “alternative arrangements” to keep the Irish border open after Brexit.
However the markets have since fallen given the realisation the legally binding text will have to be re-opened which will create much more uncertainty.
Theresa May’s comments also did not fulfil markets with great confidence after she admitted renegotiation with the bloc ”will not be easy”.
Whilst European Council president Donald Tusk insisted that the Withdrawal Agreement struck last November was not open for renegotiation.
Once parliament had ended for the night the US dollar was trading a $1.3062 whilst the euro was down at €1.1424