The pound fell as much as 1.8% to 1.1899, its lowest level since March 2020.

All eyes are on the crisis unfolding at Westminster, after the UK Health Secretary Sajid Javid resigned from Boris Johnson’s government, saying that he has lost confidence in the Prime Minister. The Chancellor of the Exchequer Rishi Sunak also announced his resignation yesterday.

However, the FTSE 100 is bouncing back today and was up 2.2% early this morning, led by exporters such as Diageo and Unilever, which got a boost from the weaker Sterling.

Recruitment firm Robert Walters jumped 4.1% after it said it forecast better-than-expected yearly earnings.

 

Things to read today:

Nadhim Zahawi: rapid rise of Britain’s new chancellor (Financial Times)

Oil prices pulled lower by dimming demand (WSJ)