Back to insights News

Pound plummets as ministers resign

Sterling suffers its biggest one day drop since October 2016 after the resignation of key ministers from the Tory government.

May’s leadership called into question

British Prime Minister Theresa May came under intense pressure over the Brexit deal her cabinet agreed to on Wednesday, 14 November. Three ministers resigned but the loss of Brexit Secretary Dominic Raab was the biggest blow, with his decision to quit triggering a 1.7 per cent fall in the value of sterling against the US Dollar.

It’s also likely to get worse before it gets better for the resilient UK Prime Minister Theresa May. Her support within her party seems to be crumbling after Jacob Rees-Mogg publicly announced sending in a letter of no confidence in the Tory leader.

In UK data, Retail Sales fell 0.5 percent in October, well below analysts’ forecast for a 0.2 percent increase. It follows a surprise 10-year peak in wage growth and tepid inflation data released earlier this week.

Across the pond, Federal Reserve (Fed) Chair Jerome Powell announced plans yesterday for the central bank to review its monetary policy tools and how it communicates moving in to 2019. The Fed is aiming to boost transparency and effectiveness of the US central bank at a time when it’s under increased scrutiny from US President Donald Trump.

Data provided by

Related Insight

More Insights