What comes next is crucial for the British economy with analysts fearing a 'no deal' worst case scenario
The British pound has steadied after an initial dip following parliament’s resounding rejection of the British Prime Minister Theresa May's Brexit deal.
The pound rallied in the immediate aftermath of the defeat as investors bet that British policymakers would exert greater control over the Brexit debate.
Bank of England Governor Mark Carney said sterling's rise after May's plan was defeated suggested investors felt the risk of a no-deal Brexit had diminished, or that the process would be extended.
Euronews' Salvatore Falco has been following the markets. He says Sterling has recently reached levels against the Euro that have not been seen since November.
"This is on the back of possible optimism on a delay of the deal, a possible renegotiation or putting the vote back to public," he explains. "All these different ideas are just trying to distract from the possibility of a no-deal scenario."
Analysts fear the UK crashing out of the EU without a deal would not only cause turmoil in the markets, but would lead to a further slowdown of the European economy.