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The British pound has moved sharply lower against the US dollar during the European trading session, following the unexpected resignation of UK Brexit Secretary Dominic Raab. The GBPUSD pair is back under selling pressure and is intraday bearish while trading below the 1.2900 level. The double-bottom pattern is now coming back into focus, following the recent technical rejection from the 1.3000 level.

The GBPUSD pair is intraday bearish while trading below the 1.2900 level, key technical support is now found at the 1.2750 and 1.2668 levels.

If the GBPUSD pair trades above the 1.2900 level, key resistance is found at the 1.2945 and 1.3000 levels.

US-China talks boost Asian shares

High-level trade talks have resumed as US President Donald Trump and Chinese President Xi Jinping had a phone call at the beginning of the month, signalling negotiations in anticipation of their upcoming meeting at the G20 at the end of this month. Chinese, Australian and Korean shares rose while Japanese shares were heading lower. The Nikkei 225 dropped by 0.20%; Hong Kong’s Hang Seng benefitted from Tencent’s Q3 results, closing +1.75% while South Korea’s Kospi index rose 0.97%. US shares dropped for the third time this week, while oil prices modestly recovered following a 12-day downtrend of -17.60% in total. The Aussie remains the strongest currency due to positive job data and a weaker dollar. AUD/USD currently trades at 0.7293 and is approaching the 0.7315 range short-term.

Pound sinks in Brexit chaos

The pound’s plunged 1.5% this morning, as uncertainty over Brexit soared. Yesterday, the UK Cabinet approved a 585-page deal drawn up with the European Union. Today, however, the UK’s Brexit Minister – Dominic Raab – resigned, saying he “cannot in good conscience support the terms proposed for our deal with the EU.” Work and Pensions Minister Esther McVey and Northern Ireland Minister Shailesh Vara also resigned this morning, and rumours abound that other ministers might step down as well.

Euphoria over a presumed deal is turning into worries that the agreement might be binned by the end of the year. Even if the EU Parliament approves the terms, the decisive vote will come to the UK Parliament in December 2018. Clearly, the GBP will remain under pressure. Starting the day at 1.30, it is headed to 1.2800 short-term.

Notes/Observations

• UK Brexit Min Raab resigned citing he could support indefinite backstop arrangement; Questions arise whether PM May could hold onto power and whether Brexit deal would pass in parliament (5th UK resignation during the EU session today; more likely)
• EU Leader Summit to take place on Nov 25th to endorse the Brexit deal
• UK Oct Retail sales data misses expectations but back month revised higher across the board
• Both Indonesia and Philippines Central Banks hike rates to counter inflationary pressures

Asia:

• Australia Oct Employment Change: +32.8K v +20.0Ke; Unemployment Rate: 5.0% v 5.1%e
• Australia Nov Consumer Inflation Expectation: 3.6% v 4.0% prior
• China govt reportedly sent written response including concessions to US regarding trade reforms but said to remain short of the type of structural changes being pushed for by the US

Europe:

• UK PM May won Cabinet backing for her Brexit plan; she warned it's her deal, no deal or no Brexit at all
• PM May stated that the collective decision of the cabinet was to support the Brexit deal; believed this was the best deal that could be negotiated. Saw difficult days ahead and this deal would come under intense scrutiny, as it should. Confirmed she would make a statement to Parliament on Thurs, Nov 15th
• Brexiteers stated that there would be enough letters by 'lunch tomorrow' to force confidence vote against PM May
• Letters said to been submitted to the powerful 1922 Committee that governs the leadership of the Conservatives
• EU commission released draft UK Brexit withdrawal agreement: UK would be allowed to request an extension of the Transition Period at any time before July 1, 2020; Transition Period could be extended by mutual consent. Backstop protocol based on maintaining full alignment with EU's internal market and the customs union; until future relationship applies, the EU and UK would establish a single customs territory with Northern Ireland in the same customs territory as Britain

Americas:

• Fed Chair Powell: challenges included how much further to hike and at what pace; pretty good reason economy stays on healthy track; reiterated all meetings were live

Energy:

• Weekly API Oil Inventories: Crude: +8.8M v +7.8M prior

Macro

• (UK) United Kingdom - Gilts rallied after Brexit Minister Dominic Raab resigned. There had been speculation of further resignation the whole morning with May reportedly struggling to get the deal past the cabinet. Now there are rumblings of a call for a no confidence vote today against the PM May due to Brexiteer anger running so high. It is likely then that political drama is likely over the coming weeks. Even if there is no ousting, May's Brexit plan looks to be all but consigned to the dustbin.
• (EU) European Union - European Council President Tusk tweeted: "If nothing extraordinary happens, we will hold a #EUCO to finalise and formalize the #Brexit agreement on Sunday 25 November at 9h30." The wary tone of Tusk's tweet reflects the reality of May's "worst of both worlds" plan, which is unpopular with significant numbers of both Eurosceptic and Europhile MPs.

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

• Indices [Stoxx600 -0.65% at 359.90, FTSE -0.09% at 7,027.45, DAX -0.20% at 11,390.06, CAC-40 -0.52% at 5,042.74, IBEX-35 -0.54% at 9,057.35, FTSE MIB -0.66% at 18,952.50, SMI -0.32% at 8,907.50, S&P 500 Futures -0.06%]
• Market Focal Points/Key Themes: European Indices trade mixed this morning, with the FTSE outperforming on the back of a steep drop in the British Pound after initial strength following a cabinet agreement on the wording of a post Brexit deal. A host of PM's have resigned included Brexit Minister Dominic Raab after saying he can't support the draft proposal. US futures trade slightly higher after another day of losses yesterday. On the corporate front UK Banking names decline following the draft Brexit proposal and the subsequent MP resignations. Recent IPO Aston Martin Legonda trades sharply lower after earnings; Royal Mail falls after initial strength following a decline in profits. Elsewhere K+S, Pirelli, OHL, Bovis Homes, VolkerWeseels among other notable decliners after earnings. Henkel trades higher after a rise in earnings, with Ion Beam, Bougues, AMS and Singlulus Tech are among other risers following results. Looking ahead notable earners include retail giant Walmart as well as JC Penny, Energizer and Berry Global among others.

Equities

• Consumer discretionary: Aston Martin Lagonda Global Holdings [AML.UK] -7% (earnings; raises unit sales outlook; comments on Brexit deal impact), Card Factory [CARD.UK] +1.5% (trading update), Hugo Boss [BOSS.DE] n/c (capital markets day)
• Consumer staples: Sixt [SIX2.DE] +1.5% (final earnings; affirms outlook)
• Energy: Scatec Solar [SSO.NO] +12% (Equinor acquires minority stake in company)
• Financials: Royal Bank of Scotland [RBS.UK] -4%, Lloyds Banking Group [LLOY.UK] -2.5%, Barclays [BARC.UK] -3% (Brexit minister Raab resigns), UBS [UBSG.CH] -1.5% , Credit Suisse [CSGN.CH] -1.5% (Swiss Competition Commission Weko launches probe of several Swiss financial companies), Investec [INVP.UK] -1.5% (earnings), Intermediate Capital Group [ICP.UK] +8% (earnings)
• Healthcare: MDxHealth [MDXH.BE] -12% (analyst action)
• Industrials: Bouygues [EN.FR] +3.5% (earnings), Royal Mail [RMG.UK] -0.5% (earnings), Henkel [HEN3.DE] +3.5% (earnings; affirms outlook), Volkerwessels [KVW.NL] -7% (earnings; cuts outlook)
• Technology: AMS [AMS.CH] -1.5% (profit warning)
• Materials: K+S AG [SDF.DE] -1.5% (earnings; cuts outlook)

Speakers

• EU Brexit Chief Negotiator Barnier stated that the agreement with Britain was fair and balanced but had no time to lose. Still had a long road ahead, on both sides with work on declaration on future relationship with Britain to be intense.
• EU's Tusk stated that had secured vitals interest of EU27 and the EU Commission intended to agree on declaration by next Tuesday, Nov 20th. Negotiations were only about damage control; did not share PM May's enthusiasm on Brexit. Confirmed EU Leader Summit to take place on Nov 25th to endorse the Brexit deal
• UK Brexit Min Raab resigned citing he could support indefinite backstop arrangement. Could not reconcile terms of proposed deal with promises made in our manifesto letter
• UK Secretary of State for Work and Pension Esther Mcvey and Northern Ireland Minister Shailesh Vara said to both tendered their resignations (minor minsters)
• Ireland Foreign Min Coveney: EU would likely endorse withdrawal agreement but Brexit contingency plans continue
• Ireland Fin Min Donohoe stated that expected Brexit deal to be passed but was preparing for all scenarios
• EU Official: Could not speculate about the failure of Brexit deal
• Sweden Acting PM Lofven: Am at the disposal to try to form a govt
• Northern Ireland Minister Shailesh Vara said to resign from PM May's Cabinet claiming that the Brexit agreement did not provide for the United Kingdom being a sovereign independent country leaving the shackles of the EU
• Suella Braverman (Junior Min) has resigned from the Brexit dept. Former chair of the ERG.
• Northern Ireland DUP official Wells (part of coalition): Believe that PM May will face a no-confidence vote
• Russia President Putin stated that was ready to restore full-scale cooperation with US. Discussed oil price with Trump at recent Paris gathering. He saw $70/barrel as a suitable price and noted that Russia would continue its cooperation with OPEC. Saw oil prices as unstable at this time; could move either higher or lower
• Russia Central Bank Zabotkin (Monetary Policy Chief): Hope that a timely rate hike would create the conditions for monetary easing in late 2019 or in early 2020. Recent oil price fluctuations were still within central bank forecasts
• Indonesia Central Bank Policy Statement noted that today's rate hike was aimed at lowering the current account deficit and to anticipate rising global rates. To continue to take measures to stabilize the IDR currency (Rupiah) and strengthen coordination with govt on CPI
• Philippines Central bank (BSP) Policy Statement noted that inflationary expectations remained elevated and today's action was to temper CPI expectations. Ready to take all necessary actions to address inflation. Prospect for domestic economy were favorable
• China Commerce Ministry (MOFCOM) stated that it hoped US and China could resolve trade dispute through dialogue and negotiations. Reiterated domestic indicators were within a reasonable range and saw no change in the country's fundamentals. China would sincerely open up its markets

Currencies/Fixed Income

• The GBP currency was broadly weaker to test 18 month lows in the aftermath of UK Brexit Min Raab resignation. The move brought into question whether PM May could hold onto power and if the Brexit deal would pass in parliament. The prospects of a hard Brexit also put into question the pace of BOE rate hikes. The prospects of a 2019 hikes appeared to be scaled back given the political developments in the UK on Brexit. GBP/USD lower by over 1.5% to trade below 1.2800 while EUR/GBP cross was higher by over 1.4% at 0.8820. Analysts noted that yesterday's cabinet's non-unanimous approval of the draft Brexit agreement pointed to several hurdles ahead.
• The 10-year Gilt yield was lower by over 10bps to test below 1.37%; 5-year Gilt lower by 15bps nearing 0.92% (biggest drop since the actual Brexit vote back in Jun 2016)

Economic data

• (NL) Netherlands Oct Unemployment Rate: 3.7% v 3.7% prior
• (EU) EU27 Oct New Car Registrations: -7.3% v -23.5% prior
• (DK) Denmark Oct PPI M/M: +0.8% v -0.5% prior; Y/Y: 6.1% v 5.8% prior
• (NO) Norway Oct Trade Balance (NOK): 34.9B v 22.2B prior
• (FI) Finland Sept Current Account Balance: +€0.1B v -€0.3B prior
• (TR) Turkey Aug Unemployment Rate: 11.1% v 11.2%e
• (ID) Indonesia Central Bank (BI) raised the Reverse Repo Rate by 25bps to 6.00% (not expected)
• (TR) Turkey Oct Central Gov't Budget Balance (TRY): -5.4% v -6.0B prior
• (PH) Philippines Central Bank (BSP) raised the Overnight Borrowing Rate by 25bps to 4.75% (as expected) for its 4th straight rate hike
• (SE) Sweden Unemployment Rate: 5.5% v 6.1%e; Unemployment Rate (Seasonally Adj): 6.0% v 6.4%e; Trend Unemployment Rate: 6.3 v 6.5% prior
• (UK) Oct Retail Sales (Ex-Auto/Fuel) M/M: -0.5% v +0.2%e; Y/Y: 2.7% v 3.4%e
• (UK) Oct Retail Sales (Including Auto/Fuel) M/M: -0.5% v +0.2%e; Y/Y: 2.2% v 2.8%e
• (IT) Italy Sept General Government Debt: €2.331T v €2.327T prior
• (EU) Euro Zone Sept Trade Balance (Seasoanly adj): €13.4B v €16.3Be; Trade Balance NSA (unadj): €13.1B v €11.7B prior

Fixed Income Issuance

• None seen

Looking Ahead

• 05:30 (PL) Poland switch auction (buy 3 tranches; sell 5 tranchesin Bonds)
• 05:30 (UK) DMO to sell £2.0B in 1.75% Sept 2037 Gilts
• 05:30 (HU) Hungary Debt Agency (AKK) to sell 12-month bills
• 06:00 (RO) Romania to sell Bonds
• 06:00 (IE) Ireland Sept Trade Balance: No est v €3.7B
• 06:30 (TR) Turkey Central Bank TCMB Survey of Expectations
• 06:45 (US) Daily Libor Fixing
• 07:15 (FR) ECB's Coeure (France) at conference
• 08:00 (PL) Poland Oct CPI Core M/M: 0.3%e v 0.0% prior; Y/Y: 0.9%e v 0.8% prior
• 08:00 (RU) Russia Gold and Forex Reserve w/e Nov 9th: No est v $459.7B prior
• 08:10 (UK) Baltic Dry Bulk Index
• 08:10 (BE) ECB's Praet (Belgium, chief economist) in Brussels
• 08:30 (US) Nov Philadelphia Fed Business Outlook: 20.0e v 22.2 prior
• 08:30 (US) Nov Empire Manufacturing: 20.0e v 21.1 prior
• 08:30 (US) Oct Advance Retail Sales M/M: 0.5%e v 0.5%e v 0.1% prior; Retail Sales (Ex Auto) M/M: 0.5%e v 0.1% prior; Retail Sales (Ex Auto/Gas): 0.4%e v 0.0% prior; Retail Sales Control Group: 0.4%e v 0.5% prior
• 08:30 (US) Oct Import Price Index M/M: 0.1%e v 0.5% prior; Y/Y: 3.3%e v 3.5% prior; Import Price Index (ex-Petroleum) M/M: 0.0%e v 0.0% prior
• 08:30 (US) Oct Export Price Index M/M: 0.1%e v 0.0% prior; Y/Y: No est v 2.7% prior
• 08:30 (US) Initial Jobless Claims: 213Ke v 214K prior; Continuing Claims: 1.63Me v 1.623M prior
• 08:30 (CA) Canada Oct Teranet/National Bank House Price Index M/M: No est v 0.0% prior; Y/Y: No est v 2.1% prior; HPI Index: No est v 226.23 prior
• 08:30 (CA) Canada Oct ADP Payrolls Report
• 09:00 (BE) Belgium Sept Trade Balance: No est v -€0.9B prior
• 09:00 (CA) Canada Oct Existing Home Sales M/M: -0.2%e v -0.4% prior
• 09:35 (ES) ECB's De Guindos (Spain) at bankers association
• 10:00 (US) Sept Business Inventories: 0.3%e v 0.5% prior
• 10:00 (US Fed's Quarles (hawk, FOMC voter) to appear before Senate Banking Panel
• 10:30 (US) Weekly EIA Natural Gas Inventories
• 11:00 (US) Weekly DOE Crude Oil Inventories
• 11:00 (CO) Colombia Q3 GDP Q/Q: No est v 0.6% prior; GDP NSA Y/Y: 2.6%e v 2.8% prior; GDP SA Y/Y: 2.7%e v 2.5% prior
• 11:00 (US) Treasury announcement for upcoming TIP auction on Wed, Nov 21st
• 11:30 (IL) Israel Oct CPI M/M: 0.2%e v 0.1% prior; Y/Y: 1.1%e v 1.2% prior
• 11:30 (US) Fed Chair Powell
• 13:00 (US) Fed's Bostic (dove, voter) in Madrid
• 14:00 (MX) Mexico Central Bank (Banxico) Interest Rate Decision: expected to raise Overnight Rate by 25bps to 8.00%
• 14:00 (CO) Colombia Sept Economic Activity Index (Monthly GDP) Y/Y: 3.0%e v 2.3% prior
• 14:00 (AR) Argentina Oct National CPI M/M: 5.5%e v 6.5% prior; Y/Y: No est v 40.5% prior
• 15:00 (US) Fed's Kashkari (dove, non-voter) speaks to Minnesota AgriGrowth Council

Cryptocurrencies were hit hard yesterday, with BTCUSD trading at a new low of 2018. We see BTCUSD falling in impulsive manner, which means more weakness after a pullback is expected. First intraday resistance for current rally comes in near 5700 from where new sell-off towards 5k may occur.

BTCUSD, 30Min

BREXIT deal may not be accepted well by investors as pair is seen in aggressive decline away from 1.3070 which now looks like an impulsive sell-off within wave C/3 headed down to 1.2750/1.2730 area.

GBPUSD, 1h

WTI contract registered the first positive daily close in twelve day on Wednesday, signaling that larger bears are taking a breather after steep fall, but recovery looks so far very limited.

Thursday's daily candle is green but with long upper shadow marked strong upside rejection and weighs on oil price, suggesting that consolidation would be short-lived and dominating bears are likely to re-take full control.

Signs of oversupply in the oil market as the US became the world's biggest oil producer with record 11.6 million barrels per day, followed by top producers Russia and Saudi Arabia, with no significant impact on global supply from new sanctions on Iran, keep oil prices under strong pressure.

Also, there was no impact from comments that OPEC has a consensus to support the decision to start balancing oil market by cutting production by 1.4 million barrels per day.

Oil needs a catalyst to spark recovery, as the price so far showed no reaction on strongly oversold daily techs, as bears generated another signal on violation of important $55.35 support (Fibo 61.8% of $42.04/$76.88 rally, but weekly close below is needed to confirm signal.

Bears also cracked next significant support at $54.80 (14 Nov 2017 trough), clear break of which would add to negative outlook.

Bearish scenario sees extension of larger downtrend from $76.88 (2018 high) on sustained break below $55.35/$54.80 pivots towards targets at $52.84 (28 Sep 2017 high) and $50.26 / 00 (Fibo 76.4% / psychological support).

On the other side, stronger recovery signal could be expected on bounce through falling 10SMA ($59.52).

Res: 56.47, 57.35, 59.52, 61.27
Sup: 55.57, 55.35, 54.80, 54.00

Resignations and leadership challenges, just another day in the life of Theresa May

It's been a crazy start to trading already this morning and with the Brexit headlines likely to continue throughout the day, I don't expect that to change.

What was meant to be a day of celebration for Theresa May after she received backing from her cabinet for the Brexit deal could quickly turn into a day of hell. Dominic Raab has got the ball rolling this morning by tendering his resignation in protest against the deal and there is plenty of speculation that more resignations will follow. May has survived resignations before but coming on the back of her final deal, this could be far more damaging if others walk as well.

More worrying could be reports that enough letters may have been collected to trigger a leadership challenge. There's no guarantee this would be successful but you have to think that there is at least a belief that there's enough support. This was never going to be an easy few weeks for May but with an increasing number of people and groups lining up in opposition against her deal, it could well be the end of the road for her.

GBP plunging on reports that more resignations will follow putting Brexit deal at risk

The pound is coming under considerable pressure in response to the resignation and a potential leadership challenge, plunging around 1.5% against the dollar, euro and yen and looking vulnerable to further declines. The old saying that it never rains but it pours couldn't be more true this morning, with the October retail sales data providing the icing on the cake, recording a second consecutive decline and falling well short of expectations.

I don't expect any easing up in sterling volatility today, with the resignations potentially coming thick and fast. Esther McVey has already added her name to the list of ministers resigning and there are reports that many more could follow, which will just pile further pressure on the currency and the Prime Minister. If the pound breaks 1.27 against the dollar, things could get very messy indeed.

US data and Fed speak also in focus

In the US, while much of the focus will be on events this side of the pond, there's also plenty for traders there to focus on. Jerome Powell's comments on Wednesday didn't really shed any further light on interest rate expectations in light of the recent market volatility, although he did allude to the fact that the central bank does keep an eye on it. I think a December hike is all but guaranteed regardless and they may then offer some updated views on interest rates next year, alongside new forecasts. I therefore don't expect much from Powell's comments today that traders will get too excited about.

Oil lower again on more inventory builds

Oil is trading lower again on Thursday after a brief bounce in the middle of the week as we await the latest inventory figures from EIA. API reported another huge build on Wednesday which just further feeds the bearish sentiment right now and confirmation of this today could be the trigger for more downside, despite OPEC's best efforts to provide verbal support. Actions speak louder than words and OPEC+ will have to offer a significant output cut at the meeting next month if they want to halt the decline in prices.

There was a positive sentiment on Thursday, at the start of the trading day. However, as we saw in the past five trading days, the positive morning vibe was gone by the midst of the American session. Markets retain the pressure against the stocks of high-tech companies, which in turn pushes indices down.

It can be said that the change in market favourites represents the transition to the next phase of the market cycle, in which participants are more focused on the company’s fundamental performance, rather than on the growth speed.

This is a clear signal that rising Fed interest rates force market participants to engage in prospect activities after the end of the easy money era, when interest rates were exceptionally low. Not surprisingly, the decline of the market in October was driven by the comments of Fed’s chairman, who made it clear that the rates may exceed the neutral level.

Yesterday, he heard another statement from Fed, when Powell referred to the economy as “really strong”, thus supporting market expectations for the December rate hike. Among his comments, it is worth paying attention to his concern in regards to the growing corporate debt.

Rising interest rates consists of the main tool against the excessive growth of corporate debt, and this is a bad sign for the growth stocks. A rapid rate hike may quickly move the market to the next phase, when defensive stocks are in demand and where consumer demands follows a steady decline (e.g. utility and healthcare companies).

Investors will careful pay attention to the retail sales in the United States today, in search of an answer to the questions of whether consumer demand is slowing amid of rising interest rates. A weak sales figure may increase the alertness to the markets by increasing the pressure on growth shares.

The price of Bitcoin has dropped by 10 percent over the last 24 hours following a severe sell-off. Yet, several low market cap crypto and tokens have plunged by twice that amount, posting losses in the range of 20 percent. ERC20 tokens launched on top of the Ethereum blockchain network have performed especially poorly against both Bitcoin and the US dollar over the past several days.

Coinbase was cautious in listing tokens on its platform because in an event wherein the tokens listed by the exchange are identified as securities, Coinbase could be targeted by the US Securities and Exchange Commission (SEC) for the distribution of unregistered securities. It is possible, as government enforcement defense and securities litigation attorney at Kobre & Kim, Jake Chervinsky, said, the SEC is preparing to take down many cryptocurrency exchanges and initial coin offering (ICO) projects, with many pending cases in the hands of the commission.

“Remember all those subpoenas the SEC sent out earlier this year? Just because you haven’t heard about them recently doesn’t mean there aren’t dozens of investigations going on behind the scenes. Sooner or later, the floodgates will open,” Chervinsky said. In an official announcement, the SEC disclosed that EtherDelta co-founder Zachary Coburn agreed to pay $300,000 in disgorgement plus $13,000 in prejudgment interest and a $75,000 penalty, showing that the case was settled between Coburn and the SEC prior to the release of the statement.

In the upcoming months, the cryptocurrency space is expected to see several pending cases against cryptocurrency exchanges and ICOs brought up by the SEC. The regulatory uncertainty in the ICO market surrounding tokens could lead to a decline in confidence from investors towards small market cap cryptocurrencies.

EtherDelta co-founder Zachary Coburn and the exchange were charged with the distribution of unregistered securities, which suggests that the SEC has cooperated with Coburn to understand the nature of several, if not dozens, of tokens considered securities under US regulations.

EUR/USD

Current level - 1.1347

Despite the significant rebound after 1.1210, my outlook remains bearish below 1.1360, for a renewal of the downtrend towards 1.1100 area. Trigger on the downside is 1.1260.

USD/JPY

Current level - 113.44

The intraday bias is bearish below 113.70, with a risk of a slide towards 112.50 static support. Key hurdle lies at 114.00 and it should be considered a trigger, for an upmove beyond 114.50.

GBP/USD

Current level - 1.2986

The spike to 1.3080 should be enough for a beginning of a downward wave towards 1.2830, en route to 1.2690.

Sterling tumbles sharply as UK Brexit Secretary Dominic Raab resigns today, just after Prime Minister Theresa May seemed to have got Cabinet support on her Brexit plan. Raab complained that "Above all, I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election."

Raab also warned in his resignation letter "no democratic nation has ever signed up to be bound by such an extensive regime, imposed externally without any democratic control over the laws to be applied, nor the ability to decide to exit the arrangement." And he emphasized that "this is, at its heart, a matter of public trust," and "I cannot support the proposed deal."

May's government is now in deeper turmoil. as the future of the Brexit plan is bring into huge uncertainty.

https://twitter.com/DominicRaab/status/1062992019449098241

Adding to that, October retail sales data were rather poor. Including auto and fuel, sales dropped -0.5% mom in October versus expectation of 0.2% mom. Excluding auto and fuel, sales dropped -0.4% mom versus expectation of 0.2% mom.