💱UK Pound Sterling/US Dollar FX Spot Rate
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Speculation that PM Starmer may step down increases political instability, weakening the pound.
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The pound has come under pressure as speculation mounts that Sir Keir Starmer is set to imminently announce plans to step down. Sterling dropped 0.3% to 1.319 US dollars in morning trading on Monday and was 0.1% down at 1.152 euro. The pound has already lost around 3% since February as Sir Keir's leadership has come under increasing threat from Labour party challengers. UK Government bonds held steady, with yields largely flat for both 10-year and 30-year gilts, standing at 4.845% and 5.54% respectively. Susannah Streeter, chief investment strategist at the Wealth Club, said investing in UK assets continues to carry a risk premium given the bouts of political instability seen since Brexit, and there is little sign of that easing.
Speculation that PM Starmer may step down increases political instability, weakening the pound.