The British Pound declines for a second day amid uncertainty over the UK’s leadership handover to incoming Prime Minister Andy Burnham.
The GBP/USD pair fell 0.4% to 1.3427 in European trading on Friday, extending its decline for a second consecutive session. The British Pound faces pressure as markets react to the UK’s leadership transition, with Andy Burnham set to become Prime Minister on Monday following Keir Starmer’s resignation.
Sterling had shown strength earlier in the week after reports that Burnham would appoint Shabana Mahmood as Finance Minister, a move perceived as fiscally conservative by investors. However, the currency has underperformed since Thursday, though it remains on track for a weekly gain.
Investors are also awaiting upcoming UK employment data, which could further influence the Pound’s trajectory amid the political shift.