On Wednesday, May said she had obtained enough support from her senior ministers for her draft Brexit deal to move forward. This came after she also received support from officials at the EU earlier in the week.
But by Thursday morning a short flurry of ministers decided to resign from their positions in protest at her proposals. Raab, in a letter to the U.K leader, said he couldn't accept the deal after the promises the ruling Conservative Party made to the country in an election manifesto last year.
A junior minister for Northern Ireland, Shailesh Vara, the Work and Pensions Secretary Esther McVey and Suella Braverman, a junior minister in Britain's Brexit Department, also submitted their resignations on Thursday morning. By lunchtime, notable Euroskeptic lawmaker Jacob Rees-Mogg said that a number of letters of no confidence had been submitted which could potentially force a vote within the party on her leadership.
Sterling plunged to $1.2833 from around $1.2994 at around 9:00 a.m. London time, following news of Raab's resignation. The currency had a volatile overnight session driven by uncertainties surrounding the fate of May's draft Brexit deal in the U.K. Parliament. By 10:20 a.m. London time, sterling was down by nearly 2 percent, trading at $1.2752.