Sajid Javid surprisingly resigns as UK Chancellor of Exchequer today. He’s expected to be replaced by Rishi Sunak, the chief secretary to the Treasury. The Guardian said that Javid was asked by Prime Minister Boris Johnson to “fire all his special advisers and replace them with No 10 special advisers to make it one team”. Javid believed that “no self-respecting minister would accept those terms.”
Sterling responds positively to the news though. Instead of viewing it as some political uncertainty, markets see that Johnson is gaining more control over the cabinet, and thus creating more certainty for the country. EUR/GBP is now heading for a test on 0.8276 low as current decline accelerates.
