2 Major Resignations after Brexit Meeting and the impact on the value of Sterling

Average earnings alongside France provide a boost for the pound

Over the weekend Brexit Secretary David Davis has announced his resignation after the meeting held at Chequers.

David Davis chose to leave late on Sunday night after feeling as though he did not believe in the proposed deal and therefore chose to step down.

Since then Foreign Secretary Boris Johnson also announced that he will be leaving at 3pm this afternoon, which led to the Pound falling by half a cent vs the Euro.

Clearly Boris Johnson has not been happy for quite some time, and as one of the main Brexit protagonists this has caused the market to react negatively for the Pound vs the single currency.

Johnson has been in the role for 2 years now and has not yet announced the reasons why he has decided to leave but clearly the uncertainty has caused the Pound to face further pressure.

With Dominic Raab due to take over from David Davis this could be a good thing for the talks as he was in favour of leaving and therefore may be able to lead the UK towards a clearer version of Brexit.

Meanwhile Labour leader Jeremy Corbyn has said Davis and Johnson have abandoned a ‘sinking ship’.

The main aim of the Chequers meeting was to try and attempt to create a harmony within the Conservatives so things could progress with the Brexit discussion but it appears as though the reverse has happened, which is why we have seen the Pound fall from 1.1330 earlier today to 1.1250 at the time of writing.

Tomorrow morning, the UK releases the latest set of GDP data as well as Industrial and Manufacturing data; if the data is positive we could see today’s losses reversed for the Pound.

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