Markets unfazed over exits in May's inner circle

London

REMARKABLY, UK currency and stock markets were relatively relaxed about the resignation of David Davis, Brexit Secretary and later Boris Johnson, Foreign Secretary. Despite worries about an impending political "crisis", sterling first rose against the US dollar and euro, but then dipped slightly. Meanwhile the FTSE 100 index continued its recovery and was up by 0.5 per cent from Friday's levels.

Currency traders said that the market believes that despite the resignations, Prime Minister Theresa May will survive in the months to Brexit at the end of March 2019. But she is very vulnerable in the months after that date. The market and major international businesses also agree with Mrs May's decision to negotiate a "soft Brexit".