GBP Breaking News: Rishi Sunak and Sajid Javid Resign from Government as Pressure Mounts on Boris Johnson
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GBP, Boris Johnson, UK – Talking Points
- Rishi Sunak and Sajid Javid resign from Boris Johnson’s government
- Pressure continues to mount on Johnson over Brexit, inflation and “partygate”
UK Prime Minister Boris Johnson has been dealt yet another critical blow in what has proven to be a difficult year, as Cabinet members Rishi Sunak and Sajid Javid both announced their resignations on Tuesday. Sunak will be stepping down from his role as Chancellor of the Exchequer, while Javid will be leaving his post as Health Secretary. The move appears to be in protest of Boris Johnson’s acting government, which has weathered numerous scandals to this point.
In his letter to Boris Johnson, Sunak specifically cited the right for the public to expect a functioning government, which may be a slight jab at the “partygate” scandal that has plagued 10 Downing Street for months. "…the public rightly expect government to be conducted properly, competently and seriously…" stated Sunak. He continued on to say that the UK “cannot continue like this,” while Javid indicated he had lost confidence in Boris Johnson’s ability to lead.
Johnson has been under significant pressure of late, having just narrowly survived a vote of no confidence last month. Eyes will now turn away from these resignations to Johnson himself, with many now likely wondering what this means for Boris Johnson’s leadership. The question now becomes whether Johnson will survive yet another political setback. And if he does manage to cling on, just how long may he last?
GBPUSD 1 Hour Chart
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Cable was relatively unchanged following the stunning headlines out of London. GBPUSD had been under pressure throughout the day as Euro weakness drove a significant and broad bid into the US Dollar. Cable fell from above 1.21 at the European open to sub-1.19 as US traders latched onto the cascade of selling.
Further geopolitical uncertainty adds to a mounting list of headwinds for the British economy, with surging inflation and a flair-up of Brexit tensions already complicating matters. Should these resignations lead to a change at the PM level, markets may gyrate as a succession plan is yet to be deduced.
EURGBP 30 Minute Chart
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--- Written by Brendan Fagan, Intern
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