Sterling extends weekly losses as investors assess potential fiscal policy shifts under Prime Minister Burnam.
The British Pound (GBP) fell below 1.3400 against the US Dollar (USD) on Thursday, extending its weekly decline to 0.6%. The move follows a reversal from recent highs of 1.3558, driven by growing investor unease over fiscal policy under new UK leadership.
Prior to this week, GBP/USD had shown resilience, trading near multi-month highs amid expectations of stable economic policies. However, comments from Prime Minister Burnam have reignited concerns over potential fiscal expansion or policy shifts, weighing on the currency.
Markets are closely monitoring developments, with sterling’s trajectory hinging on clarity around the government’s economic strategy in the coming weeks.