The pound is tanking after Theresa May’s Brexit secretary resigns

Dominic Raab
WPA
Pool/Getty

LONDON — The British pound tumbled 1.3% in Thursday trading after
Brexit secretary Dominic Raab resigned,
saying he cannot “in good conscience” support Theresa May’s
Brexit plans.

He announced his resignation on Thursday morning, and said he
retained an “enduring respect” for the prime minister.

Even before Raab’s announcement, the British currency seemed to
take a wary view of
May’s 585-page Brexit deal unveiled Wednesday evening,
tipping into the red Thursday morning.

Even without additional Tory uproar about the deal, there are
plenty of hurdles: President of the European
Council Donald Tusk described the deal as a
“lose-lose” situation, and EU chief Brexit negotiator Michael
Barnier warned of a “long road
ahead.” There’s also a potential Parliamentary vote in early
December, with the possibility of dissent from the Northern Irish
politicians, Conservative Brexiters, Remainers, and the
opposition Labour party. 

“In other words, there is plenty of reason why the pound isn’t in
any rush to celebrate Wednesday’s developments,” Connor Campbell,
a financial analyst at Spreadex, said in an email. 

Here’s how the pound looked at about 9:30 a.m. in London (4:30
a.m. ET):

The
pound nosedived

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