As Brexit uncertainty continues, the pound fell to an 11-day low against the dollar.
The pound slumped down almost 1% to $1.2845 on Monday’s early trading.
The pound is taking a hit after transport minister Jo Johnson resigned last week, blaming Theresa May and her “terrible mistake” of a Brexit deal.
Johnson said that the UK is “on the brink of the greatest crisis” since the second world war.
“Inflicting such serious economic and political harm on the country will leave an indelible impression of incompetence in the minds of the public,” he added on his resignation.
The head of research at London Capital Group, Jasper Lawler, said: “We expect the pound to be in for a rough ride, especially if Theresa May attempts to force her Brexit plan through. For there is growing opposition within her own government. There is a good chance that she may not come out the other side.”
“The chances of a Brexit deal are diminishing rather than increasing as we approach the finishing line. There is no high impacting UK data to be released today, domestic political risk combined with Brexit fears will weigh heavily on the pound.”
“Going forwards there are some data points which could steal trader’s attention in the week, such as the UK jobs figures, inflation data and retail sales later in the week. However, concrete progress in Brexit negotiations will be needed, otherwise the pound could quickly target $1.28,” he added.
The final deal is expected to be finalised by November 21, according to Brexit secretary Dominic Raab.
