Pound Crashes as Two UK Ministers Resign Following Brexit Deal

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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