The British pound today crashed to new 2-week lows after two UK Ministers and a junior minister led by former Brexit Secretary Dominic Raab resigned following yesterday’s draft Brexit deal. The Sterling was further weighed down by the disappointing retail sales data released earlier today, which pointed a grim picture of the UK economy.
The GBP/USD currency pair today plunged from a high of 1.3029 to a low of 1.2755 and was on a downtrend at the time of writing.
The cable was in a consolidative phase during the Asian session before heading lower in the early London session. The first resignation was that of Junior Northern Ireland minister, Shailesh Vara, in potest of yesterday’s Brexit deal backed by Theresa May‘s cabinet after a 5-hour long meeting. Then Brexit Minister Dominic Raab and the Cabinet Secretary for Work and Pensions, Esther McVey, also quit their positions. More resignations have been announced and some more may occur as the British political landscape shifts significantly in response to Theresa May’s Brexit plan. It seems quite likely that the Prime Minister may soon face a leadership challenge.
The currency pair was also weighed down by the release of the latest UK retail sales data by the Office for National Statistics, which missed expectations. The retail sales print declined by 0.5% in October versus the expected 0.2% expansion.
The currency pair’s short-term performance will be largely influenced by the ongoing changes happening within the UK government in relation to the controversial Brexit deal.
The GBP/USD currency pair was trading at 1.2781 as at 10:47 GMT having dropped from a high of 1.3029. The GBP/JPY currency pair was trading at 144.93 having declined from a high of 147.88.
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