Sterling has crawled up in value after the Prime Minister’s EU withdrawal bill was passed in the commons this afternoon.
The news paves the way for Britain to leave the bloc by January and to end trade talks by the end of 2020.
It’s brought a level of certainty to the Brexit saga which will make many traders more comfortable investing in the pound.
Shortly after the vote the pound was up 0.6% against the Euro to €1.1764 and 0.2% against the US dollar to $1.3039.
Sterling had been creeping up in value in the run up to the sitting in which MPs backed the bill 358-234.
It’s been a rocky couple of weeks for the pound, having made gains following the Consevative’s landslide election victory only to lose them again on Tuesday after Johnson put the prospect of a no-deal Brexit back on the table.
Senior economist at Standard Chartered Chris Graham said ruling out an extension when under no political pressure to do so caught markets off-guard.
But some analysts suggest the PM could avoid the cliff-edge of December 2020 by rushing through the bare minimum to pass as a deal before the deadline and complete the rest afterwards.
Mr Graham added: ‘I think Sterling could start to do better again if we see signs of stronger economic data and progress in UK-EU negotiations on the future relationship.’
The Bank of England kept rates steady yesterday, saying it was too soon to tell how much Johnson’s election win would lift the Brexit uncertainty that has clouded the economy.