Cable falls to the lows of the day after Jo Johnson’s resignation


Cable below 1.30

In the middle of the week it looked like a Brexit deal was at hand. Today there are more problems on the Irish border and the resignation of Jo Johnson.

There are two questions. The first is whether they can get a divorce deal worked out, with the main snag still the Irish border. The second is whether they can get that deal through Parliament.

There have been a series of Conservatives quitting cabinet in the past six months but the worry is that they hit a tipping point. The fear right now is that Johnson was briefed on the contents of the deal and that pushed him over the edge.

Will others follow? The drop in GBP is saying that the risks are rising. May doesn’t have much room for error.


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