Investing.com - A cross-party motion to give control of parliamentary business to Members of Parliament in order to block a no deal Brexit was defeated in the House of Commons on Wednesday.
The pound sunk to the day's lows after MPs voted against the motion, which would have given parliament the chance to prevent Britain crashing out of Europe without a deal on 31 October.
At 15:57 GMT, GBP/USD was down 0.25 percent to 1.2695. EUR/GBP edged higher to 0.8909.
Members of Parliament rejected the motion, tabled by the opposition Labour party, with 309 Noes to 298 Ayes.
Jeremy Corbyn's Labour party was seeking to hand control of the parliamentary agenda to MPs on 25 June to put measures in place to prevent the UK leaving the European Union without a deal.
No deal rhetoric resurfaced among politicians after the newly formed Brexit Party claimed victory in the European Parliamentary elections in May. The United Kingdom is currently scheduled to leave the EU on 31 October, however it remains uncertain what the terms of the divorce will be.
Parliament has voted down the deal agreed between the EU and Theresa May three times.
Theresa May resigned as Prime Minister on 7 June after she failed to get her Brexit deal through parliament and leave the bloc on the 29 March. The race to find her successor officially began on Monday, with 10 Conservative party hopefuls vying for the position of PM.