British Pound gains as UK Burnham pledges continuation of current Labour policy
The British Pound (GBP) outperforms its major currency peers, trading 0.25% higher to near 1.3230 against the US Dollar (USD) during the European trading session on Monday. The United Kingdom (UK) currency gains as Greater Manchester Mayor Andy Burnham, the frontrunner for the leadership position after Prime Minister (PM) Keir Starmer’s resignation, has vowed to continue the principles of the Labor Party’s 2024 manifesto, a scenario that indicates the continuation of ongoing fiscal policy.
No change in the UK’s policies means no fresh boost to interest obligations for the government on fresh debt, which generally happens when the political shift is done between different parties. In the European trade, 10-year UK Gilt Yields have given back their slight gains and are marginally lower to near 4.73%. Read more…
GBP/USD Price Forecast: Pound keeps looking for direction around 1.3200
The British Pound (GBP) is practically flat against the US Dollar (USD) on Monday, with Pound bulls subdued amid rising geopolitical tensions and the UK’s political impasse, while the safe-haven USD treads water, awaiting an array of US employment indicators. The GBP/USD pair remains steady at 1.3200 halfway through the last two weeks’ trading range.
Investors are wary of risk at the week’s opening, despite the latest agreement to end a series of attacks in the Strait of Hormuz this weekend, which had shaken a precarious ceasefire. US and Iranian negotiators have also agreed to restart peace talks this week, in the latest attempt to end a four-month-long conflict that threatened to collapse the global economy. Read more…
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