Sterling tumbled today after Mrs May saw her deal turned down by a majority of 58, with the final tally coming in at 286 votes to 344. The Prime Minister said the implications of the vote were “grave” adding: “I fear we are reaching the limits of the process in this House.” The result saw the pound crash below €1.16 and was trading at €1.1575 at 2:50PM UK time. The pairing is currently down 0.2 percent.
Against the US dollar, Sterling is trading at $1.2995 at the same time of writing.
Brexit is now on course for a lengthy delay following the defeat.
The result of the crunch vote means that the UK has missed an EU deadline to secure an extension of the process and leave with a deal on May 22.
MPs today considered the withdrawal agreement, which is the legally binding “divorce deal” and covers the UK’s exit from the EU.
MPs did not vote on the political declaration element which is non-legally binding and looks at the future relationship Britain will have with the bloc.
The withdrawal agreement deals with matters such as the transition period after the UK formally leaves the EU as well as proposals for the controversial Northern Irish backstop.
Mrs May now has until April 12 to go back to Brussels with new proposals and seek a longer extension to the negotiation process, or see the UK leave without a deal that day.
With a clear majority in the Commons against no-deal, and with MPs once more seizing control of the timetable on Monday, Mrs May said that the UK would have to find “an alternative way forward”.
This was “almost certain” to involve the UK having to stage elections to the European Parliament in May, she said.
Mrs May said that the outcome was “a matter of profound regret”.
Mrs May went on: “The European Union has been clear that any further extension will need to have a clear purpose and will need to be agreed unanimously by the heads of the other 27 member states ahead of April 12.
“It is also almost certain to involve the UK being required to hold European parliamentary elections.
“On Monday, this House will continue the process to see if there is a stable majority for a particular alternative version of our future relationship with the EU.
“Of course, all of the options will require the Withdrawal Agreement.
“I fear we are reaching the limits of this process in this House. This House has rejected no-deal.
“On Wednesday it rejected all the variations of the deal on the table, and today it has rejected approving the Withdrawal Agreement alone and continuing a process on the future.
“This Government will continue to press the case for the orderly that the result of the referendum demands.”