Sterling Falls for 2nd Session

2025-11-12 12:24 By Agna Gabriel 1 min. read

The British pound weakened to $1.3125 as political uncertainty and pre-budget concerns weighed on sentiment.

Reports of a denied attempt to challenge Prime Minister Keir Starmer’s leadership unsettled investors just two weeks before the UK budget.

Allies warned that any leadership move could spark market instability and drive up gilt yields.

Meanwhile, doubts over UK labour market data added to volatility.

The ONS reported unemployment rising to 5% in the three months to September, but economists questioned the reliability of the figures, citing erratic trends and problems with the Labour Force Survey.

Bank of England rate-setter Megan Greene also highlighted data complications.

The jobs report initially strengthened expectations for a December BoE rate cut, with markets pricing in an 80% chance, after the central bank held rates steady last week.

Investors now await Q3 GDP data for more clarity on growth prospects ahead of the upcoming budget announcement.



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