The pound is headlining the start of the week as cabinet resignations threaten the political stability of the United Kingdom and Prime Minister Theresa May’s Brexit plan. U.S. consumer price index for June is due Thursday against a backdrop of trade concerns.

Brexit breakdown?

The pound took a nose dive Monday morning after the second U.K. cabinet resignation in less than 24 hours.

GBP/USD fell more than 100 pips from around 1.335 to around 1.324 after Boris Johnson announced his resignation from his post as foreign secretary.

The move from Johnson, a Brexit hardliner, appears to be in reaction to the announcement that the U.K. would move forward with a softer Brexit plan after Prime Minister Theresa May and cabinet members met in Chequers to hash it out.

Johnson’s resignation follows the resignation of Brexit Secretary David Davis Sunday evening.

The resignations put pressure on May, who was set to deliver her plan to the House of Commons this week. U.K. GDP for the month of May is due Tuesday.

Bank Of Canada decision Wednesday

The Bank of Canada’s interest rate decision and monetary policy statement is due Tuesday with a hike expected.

The BoC hasn’t  increased borrowing costs since January, but the chances of an interest rate hike is priced in at 80%. Rates would be raised to 1.50% from 1.25%.

Inflation is above the BoC’s target and is adding to the pressure to raise rates. The possibility of a trade war with the U.S. is reason for the BoC to me more careful.

Inflation figures Thursday

Starting off Thursday, the Germany’s Harmonized Index of Consumer Prices for June is due.

The inflation measurement is expected to remain steady at 2.1% growth. As Europe’s largest economy, the German CPI figure is closely watched.

The U.S. CPI follows later in the day. Most investors are estimating a slight increase in the growth for June. Excluding energy and food, CPI is estimated at 2.3% growth YoY compare to 2.2% the previous month. Month-over-month growth is expected to remain at 0.2%.

We’ll also see continuing jobless claims on Thursday. On Friday, the Michigan Consumer Sentiment Index will round out the week.