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Brexit Resignations Shake Sterling

Published July 10, 2018

The NZD opens a touch higher this morning in light trading overnight, with the kiwi making the biggest gains against the Pound as UK’s PM Leadership is challenged.

Key departures rock May’s proposed Brexit vision

UK Brexit Secretary David Davis and Foreign Secretary Boris Johnson quit Theresa May’s government on Monday in protest of her plans to keep close trade ties with the EU after Britain leaves the bloc. Davis said he was no longer the best person to deliver the PM’s Brexit plan as he did not “believe” in it and felt the UK was “giving away too much and too easily” to the EU in the negotiations. The resignations come just days after May proclaimed cabinet unity last Friday and did little to show the unity she wants to present at the next round of negotiations in Brussels. May has replaced Davis with Brexit campaigner, junior minister Dominic Raab and stated she has no intentions of extending the exit date of March 29, 2019 with focus remaining on moving the exit negotiations on.

Key focus today

  • Locally we have NZ electronic card retail sales this morning, not generally a big market mover
  • China’s inflation numbers released at 1.30pm, with an uptick of 1.9% expected vs previous 1.8% for May