Andy Burnham’s vow to retain current fiscal rules eases investor concerns amid rising political uncertainty for UK Prime Minister Keir Starmer.
The British Pound rose to 1.3414 against the US Dollar on Monday, recovering from multi-week lows near 1.3302. The gain followed Andy Burnham’s pledge to maintain Chancellor Rachel Reeves’ fiscal rules if elected, easing market fears of policy shifts under a potential new government.
Pressure on Prime Minister Keir Starmer intensified after Labour’s poor local election performance, fueling speculation about his leadership. Burnham, seen as favoring greater state intervention, sought to reassure investors, pushing UK Gilt yields higher. Money markets had priced in at least two Bank of England rate hikes this year, per Price Terminal data.
The broader market mood remained mixed, with US equities fluctuating and the US Dollar paring earlier losses. Geopolitical tensions persisted, with WTI crude rebounding above $100.00 a barrel amid shifting US-Iran negotiations.