The British pound today registered a massive drop against the US dollar after a cabinet reshuffle by Theresa May turned chaotic. The cabinet reshuffle turned chaotic after the Education Secretary Justine Greening quit the government and Health Minister Jeremy Hunt refused to vacate his office.
The GBP/USD currency pair lost over 70 points from a daily high of 1.3582 hit during the Asian session to hit a low of 1.3510 in the early American session.
The cabinet reshuffle by Theresa May ushered in younger cabinet secretaries who are regarded as rising stars, while some older politicians were sacked. The younger group of leaders includes Sam Gyimah, Dominic Raab, Jo Johnson and Alok Sharma. Among the older politicians who were removed from the cabinet include Mark Garnier who lost the trade ministry spot, but said he would support the government from the back benches. The cabinet reshuffle also resulted in a more diverse group of ministers as Mrs. May appointed 34 female ministers.
Other ministers who lost their positions include Robert Goodwill who was the minister for children and families and was quoted saying that he was making room for younger people. John Hayes and Phillip Dunne also lost their cabinet positions.
The currency pair’s future performance is likely to be affected by a raft of UK and US macro releases scheduled for tomorrow.
The GBP/USD currency pair was trading at 1.3513 as at 15:49 GMT having dropped from a daily high of 1.3582. The GBP/JPY currency pair was trading at 151.99 having declined from a high of 153.58.
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