2018.11.1507:12:00UTC+00Pound Sharply Down After Brexit Secretary Raab's Resignation

The pound lost ground against its major counterparts in the European session on Thursday, as U.K. Brexit Secretary Dominic Raab and Junior Brexit minister Suella Braverman quit from the government, protesting against Prime Minister Theresa May's Brexit plans.

Raab announced that his resignation was due to disagreement over "the regulatory regime proposed for Northern Ireland" that poses "a very real threat to the integrity of the United Kingdom."

Raab's departure came shortly after the resignations of Work and Pensions minister Esther McVey and Northern Ireland minister Shailesh Vara over the plans.

The resignations of cabinet ministers are a big blow to Prime Minister Theresa May, who is struggling to get support from lawmakers in Parliament to accept the agreement with the European Union.

The currency was also hammered by weak U.K. retail sales for October.

Data from the Office for National Statistics showed that U.K. retail sales fell 0.5 percent from last month, when they fell 0.4 percent, revised from a 0.8 percent slump. Economists had forecast a 0.2 percent increase.

On a year-on-year basis, retail sales volume grew 2.2 percent in October, which was the slowest pace in six months. Economists were looking for a 2.8 percent gain, defying forecasts for a 0.2 percent rise.

The currency was higher against its most major opponents in the Asian session after news that U.K. PM Theresa May had obtained cabinet support for her proposed Brexit deal to move forward.

The pound depreciated 1.7 percent to a 2-week low of 0.8844 against the euro, following a rise to 0.8695 at 5:00 pm ET. The pair had closed Wednesday's trading at 0.8704. Next likely key support for the pound is seen around the 0.90 level.

After rising to 147.93 against the yen at 2:15 am ET, the pound reversed direction and dropped 2.3 percent to a 2-week low of 144.57. The pair was valued at 147.56 when it closed deals on Wednesday. Continuation of the pound's downtrend is likely to take it to a support around the 143.00 level.

The pound was 1.9 percent lower against the Swiss franc, touching a new 2-week low of 1.2844. This follows a high of 1.3097 touched at 1:30 am ET. The pound-franc pair had closed yesterday's trading at 1.3057. The pound may test support around the 1.27 level, if it slides again.

The U.K. currency lost 2 percent to hit a new 2-week low of 1.2751 against the greenback, after climbing to 1.3030 at 1:45 am ET. At Wednesday's close, the pair was quoted at 1.2985. The pound is poised to find support around the 1.26 level.