Pound experiences wild swings

16 November, 2018

As we wrote yesterday, the pound has experienced some wild swings over the last 24 hours which has now been exasperated by the resignation of 4 more ministers from UK Prime Minister Theresa May’s cabinet and some say it’s only a matter of time before the PM will be forced to resign.

With the tide turning against her, the PM remained strong telling parliament that her deal was the best way forward and a no deal scenario would be devastating for the UK

“The choice is clear. We can choose to leave with no deal, we can risk no Brexit at all, or we can choose to unite and support the best deal that can be negotiated,” Mrs May said.

Dominic Raab, the most high profile minister to resign this morning gave his reasons for exiting the government citing the current deal on the table betrays the promises made to the UK people, which he could not be part of

“Above all, I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election,” Raab said.

“This is, at its heart, a matter of public trust,” Raab said. “I cannot support the proposed deal.” He added.

The reaction by the British pound after the resignations was brutal with the currency having its biggest fall since 2017 and with the chances of a no deal Brexit now seemingly at an all-time high, the sterling may possibly break the lows of around $1.20, which occurred immediately after Britain voted to leave the EU

The low of $1.27 reached around 2 weeks ago will be a very important level as the day unfolds and if breached the level reached after Brexit may come sooner rather than later.

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