Boris Johnson claimed the "Brexit dream was dying" and said the UK was "truly headed for the status of colony" which lead to a fresh four-month law for the British pound and warning that the currency would remain vulnerable to political headlines.
Secretary of State for Exiting the European Union said he no longer believed in Theresa May's Brexit plan and felt the UK was "giving away too much and too easily" to the EU.
I am proud to have served as Foreign Secretary. It is with sadness that I step down: here is my letter explaining why. pic.twitter.com/NZXzUZCjdF— Boris Johnson (@BorisJohnson) July 9, 2018
Boris Johnson says staying in the single market would be “ludicrous” and turn Britain into a “colony”. Here’s what he said before the referendum: pic.twitter.com/UCeifCf0dC— Adam Bienkov (@AdamBienkov) July 10, 2018
The resignations caused uncertainty in the currency markets and therefore a dip in the value of the pound. However expectations that Theresa May would survive as prime minister during Britain's negotiations with the European Union meant the pound recovered some of its losses. At the time of writing the Pound is down at US$1.32 against the Dollar with any further uncertainty expected to drive the pound lower.
But in another blow to Theresa May, two vice chairs of the Conservative Party have resigned over May's Chequers plan. Ben Bradley and Maria Caulfield are the latest to quit.
"If we do not deliver Brexit in spirit as well as in name, then we are handling Jeremy Corbyn the keys to Number 10," Ben Bradley wrote in his resignation letter.
Ben Bradley — cannot defend this course to my electorate pic.twitter.com/JignnNC7T4— Beth Rigby (@BethRigby) July 10, 2018
Obnoxious Ben Bradley quitting as a Tory vice chair after lie-ability Boris Johnson flounced out of the Cabinet is a second boost for embattled Theresa May— Kevin Maguire (@Kevin_Maguire) July 10, 2018
With uncertainty continuing to shroud Theresa May's premiership, a general election looms pushing the value of the pound lower.
"The odds of a general election by the end of the year have now moved further in to 7/4. With Brexit tensions now really coming to a head we can expect political uncertainty to drive the pound lower," Phil McHugh chief market analyst of Currencies Direct told Pound Sterling Live.