Pound plunges against euro and dollar after Grieve and Cooper amendments fail in Commons

The pound has plunged against the US dollar and Euro after a crucial series of Brexit votes in the Commons.

In the wake of the votes, sterling dropped to 1.3 against the US dollar while it fell to 1.145 against the Euro.

Theresa May was buoyed after the evening of voting on amendments to her Brexit deal, however the markets responded negatively after it emerged Europe was not willing to re-negotiate.

Looks as though the defeats for the Grieve and Cooper amendments to prevent a no deal has had a massive impact on the £ v Euro and USD. pic.twitter.com/tXpA3PsxWQ

— Ian Murray (@IanMurrayMP)

January 29, 2019

Last year the Bank of England warned that a no deal disorderly Brexit would send the pound plunging while inflation soars and interest rates rise.

The outcome contained in the Bank's analysis of various EU withdrawal scenarios, would also see unemployment skyrocket.

In the event of a disorderly no deal, no transition Brexit, Britain's GDP could fall by 8 per cent, according to a worst case scenario analysis by the Bank.

It added the unemployment rate would rise 7.5 per cent, inflationwould surge 6.5 per cent while interest rates would rise as high as 5.5 per cent.