One of the more well known UK Conservatives resigned over the weekend and that might jolt the pound into action when London opens
The big news from the UK this weekend was the resignation of a big name in the Conservative party.
Iain Duncan Smith was the Secretary of State for Work and Pensions until he resigned over the proposed cuts to disability benefits announced by Chancellor George Osborne in his budget last week.
This is a big loss to David Cameron and potentially throws a big spanner into his party's unity.
While the stated reason for his resignation shouldn't be much to roil UK markets, it's the reading-between-the-lines reasons that might. Duncan Smith is a big voice in the leave Europe campaign in the EU referendum, and there will be noise that he will throw his hat into the ring to replace Cameron. One of the first moves the bookies made was to cut his odds of becoming the leader of the Conservatives, something he's already been between 2001-2003, to not great success.
As is usual for politics, the real reasons for a politicians actions often outweigh the published reasons and come to light further down the line. If the market reads that Europe and a leadership challenge is the main reason for his resignation, that's likely to affect the pound more than the cuts to benefits. Any move is unlikely to be huge but if you see a wobble, you'll be ready for it. In fact, the small gap down I'm seeing in cable from the open may mean we've already seen some reaction.
Just a heads up for when London opens up in earnest in the next hour or so.
Iain Duncan Smith jumps ship from the Conservatives
