What’s been happening? The pound was on poor form yesterday after fresh scandal embroiled the government. Pressure was building for Prime Minister Theresa May to sack Foreign Secretary Boris Johnson and International Development Secretary Priti Patel. Calls for Johnson to be sacked come after he claimed in Parliament Nazanin Zaghari-Ratcliffe was ‘teaching people journalism’ while in Iran; the British charity worker is currently serving five years in prison accused of spy charges, and claimed in her defence that she was not working and was on a family holiday. Johnson’s gaffe could see Zaghari-Ratcliffe’s sentence doubled. Meanwhile, Patel was under fire after failing to disclose to Downing Street that she met with Israeli officials during a recent holiday, which included a visit to a hospital in Golan Heights; a region Israel’s control of which the international community refuses to recognise. With Defence Secretary Michael Fallon having resigned last week in response to accusations of inappropriate behaviour towards female colleagues, May faced losing two more key Cabinet members. In the end, Patel resigned upon returning to London. Johnson and Patel are key Brexiters, so the Cabinet looks likely to see infighting intensify and May’s position weaken as MPs react to her picks for replacements to Patel - and Johnson, should he depart as well. Sterling’s weakness saw GBP/EUR tumble, although elsewhere the euro was faring poorly. A lack of fresh domestic data left markets considering the long-term outlook for Eurozone monetary policy, which isn’t exactly rosy given the latest spate of poor data releases. GBP/USD also slumped yesterday, although this was largely down to weakness in the pound. The US dollar was continuing to muddle along, with nothing on a calendar to support it significantly higher, but with those enormous odds of an interest rate hike next month keeping a firm floor beneath it. | 
