Pound Slips as Resignations Raise Questions About May's Survival

Sterling erases earlier gains after Johnson steps down
This adds to market fears over more extreme Brexit: CIBC

The pound will rise if U.K. PM Theresa May gains support for her Brexit plan, Credit Suisse’s Shahab Jalinoos says.(Source: Bloomberg)

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By Charlotte Ryan and Ellen Milligan

July 9, 2018 at 8:15 AM UTC

Updated on

July 9, 2018 at 3:43 PM UTC

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The pound fell as U.K. Foreign Secretary Boris Johnson’s resignation increased the risk that British Prime Minister Theresa May will face a leadership challenge.

Sterling reversed gains after Johnson, who was the face of the campaign to exit the European Union, followed Brexit Secretary David Davis in stepping down over disagreements about May’s strategy for leaving the bloc. A move by lawmakers to try to oust the prime minister could lead the currency to fall as low as $1.25, strategists say.