15.11.201815:00 Forex Analysis & Reviews: Pound sterling collapsed due to the resignation of the British Minister

According to CNBC, experts recorded a drop in the pound sterling by more than 1%. The reason was the announcement of the resignation of Dominic Raab, the British Minister for Brexit.

In a letter addressed to Theresa May, the country's prime minister, the official expressed his disagreement with the terms of the Brexit agreement she proposed. Analysts believe that the current situation will increase the political pressure on T. May.

On Wednesday, November 14, the British Prime Minister informed the public about significant support from the Cabinet of Ministers. According to T. May, they approved the current draft agreement on the country's withdrawal from the EU. However, experts have doubts about the approval of this project by the British Parliament.

Recall, the draft agreement on Brexit volume of 585 pages provides for the coordination of a trade transaction between the UK and the EU by the end of 2020. Reconciliation must occur within 21 months after Brexit. However, the planned transition period can be extended if necessary.

Currently, the pound sterling fell by 1% to $ 1.2856. Experts called the catalyst a drop in the news about the resignation of D. Raab. Earlier, the British currency experienced a surge in volatility due to the uncertainty associated with the draft agreement on Brexit. As of 11:04 London time, the pound sterling collapsed by 1.5%, to $ 1.2795. Experts are confident that if the draft agreement is approved in parliament, the British currency can maintain its position in the range of $ 1.35- $ 1.40.

Experts recorded a decline in the yield of British bonds. Demand for safe assets rose on news from Brexit. The yield on 10-year German bonds fell by 3 basis points, to 0.364%, reaching a minimum in almost three weeks.