Hardly surprising the Brexit mess continues. Following the entire soap opera is getting more amusing by the hour.
Sterling is getting sold….
…and turned right on the 50 day average.
FTSE is getting a boost by the falling sterling. Note the index trading above the 50 day average right here.
Boris Johnson resigned from the U.K. government, tipping Prime Minister Theresa May deeper into crisis and increasing the chances she’ll face a leadership challenge over her Brexit policy.
Johnson, who served as foreign secretary, was the face of the Brexit campaign. His exit sends a strong message to the 52 percent of voters who backed leaving the European Union in 2016 that their decision is being betrayed. It’s also just hours since Brexit Secretary David Davis quit in protest over May’s efforts to keep Britain closely bound to the EU after the split, due in March.
High-profile resignations can unleash leadership challenges in the U.K., and Davis’s prompted pro-Brexit lawmakers to demand May rip up her proposals — though they didn’t call for her to go. That’s partly because they can’t be sure they have the numbers needed to defeat her.
But Johnson’s exit could embolden others.
Source: charts by Bloomberg
In the article written by James Knightley and James Smith you will find more information.