European Parliament voted in favour of granting UK Brexit extension

According to the latest headlines crossing the newswires, the European Parliament has voted 544 to 126 in favour of granting the United Kingdom an extension to Article 50 if the UK were to request for one.

This outcome was not a big surprise and is largely being ignored by the market participants. As of writing, the GBP/USD pair was down 0.32% on the day at 1.2460 and the EUR/GBP pair was adding only 10 pips at 0.8865.

Earlier today, Germany’s powerful BDI industry association’s Managing Director Joachim Lang, argued that an extension to Brexit should only be granted if the UK offers a feasible solution to the Irish backstop problem.