GBP/JPY extends losses for the second consecutive day on Wednesday as the British Pound (GBP) comes under broad pressure, weighed down by rising political uncertainty in the United Kingdom.
At the time of writing, the cross is trading around 213.08, easing from an intraday high near 213.70 and down roughly 0.15% on the day
Political pressure on UK Prime Minister Keir Starmer intensified after the Labour Party suffered heavy losses in last week’s local elections. Reports suggest that more than 80 Labour MPs have called on Starmer to resign, while four cabinet ministers have already stepped down amid mounting pressure. UK Health Secretary Wes Streeting is reportedly emerging as a potential leadership challenger.
Starmer has confirmed that he will not resign from his post, while allies close to the Prime Minister reportedly said he is prepared to face Streeting in any potential leadership contest. However, losses in GBP/JPY remain relatively contained as the Japanese Yen (JPY) struggles to gain traction amid ongoing tensions in the Middle East. Elevated Oil prices continue to cloud Japan’s economic outlook, given the country’s heavy reliance on energy imports from the region.