Pound down on minister resignation

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

The British pound has fallen against major currencies over fresh Brexit fears, and the resignation of a key minister which threatens to throw the government into chaos.

Work and pensions secretary Iain Duncan Smith dropped a bombshell over the weekend by resigning from the government siting irreconcilable differences over plans to cut £4 billion from disability benefits.

The secretary noted that the government was protecting the interests of the upper class by choosing to target the less privileged.

The move left Prime Minister David Cameron in shock as he scrambled to seek support for Britain to stay in the Eurozone.

Mr Smith is a known Eurosceptic and his resignation was taken by the market as a challenge to David Cameron’s leadership.

With the in or out sides so close, any news is likely to favor one or the other according to Boris Schlossberg, managing director of FX strategy, at BK Asset Management.

 “The latest poll of polls by National Centre for Social Research shows that Brexit vote is essentially even money with the general public slit at nearly 50% on the issue. Therefore any news flow that could tip the odds either way is likely to create volatility in cable,” Schlossberg said.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.