UK pound rebounds after May’s Brexit plan was resoundingly repudiated in the commons

Britain’s currency dropped and then rebounded sharply in volatile trade following Theresa May’s heavy defeat in a House of Commons vote on her Brexit deal.

Sterling fell as low as $1.2672, down 1.5 per cent on the day, immediately after the results were read in parliament. However, it cut its losses dramatically almost immediately afterwards, leaving it flat on the day.

Sterling had been off 1.2 per cent just before the reading of the results. The historic defeat having largely been priced into the pound in the run-up to the vote. With attention already focused on Remainer efforts to fend off a ‘no deal’ scenario and extend Article 50.

The Brexit package Mrs May agreed with the EU was voted down in the Commons by 230 votes. Prompting Jeremy Corbyn, the Labour leader, to move for a vote of no confidence in the Tory government.