Pound Falls as Streeting Resignation Fuels Political Turmoil

2026-05-14 13:08 By Joana Ferreira 1 min. read

The pound weakened to $1.35 on Thursday, heading for its longest losing streak since the end of March, as political uncertainty intensified following the resignation of Health Secretary Wes Streeting.

Streeting is now expected to launch a leadership challenge against Prime Minister Keir Starmer, who faces mounting pressure to step down after significant losses for the ruling Labour Party in last week’s local elections.

Angela Rayner, another potential contender, was cleared by HMRC in a tax investigation this morning, potentially clearing her path to enter the race.

Investors also processed hawkish comments from Bank of England's Sarah Breeden, who stated that the Middle East conflict is “much less likely” to trigger an inflation surge like in 2022, though she added that any necessary rate hikes could wait until later this year.

Meanwhile, the UK economy expanded by 0.6% in Q1 2026, with annual growth reaching a stronger-than-expected 1.1%, driven by a surprising 0.3% rise in March.



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Pound Falls as Streeting Resignation Fuels Political Turmoil
The pound weakened to $1.35 on Thursday, heading for its longest losing streak since the end of March, as political uncertainty intensified following the resignation of Health Secretary Wes Streeting. Streeting is now expected to launch a leadership challenge against Prime Minister Keir Starmer, who faces mounting pressure to step down after significant losses for the ruling Labour Party in last week’s local elections. Angela Rayner, another potential contender, was cleared by HMRC in a tax investigation this morning, potentially clearing her path to enter the race. Investors also processed hawkish comments from Bank of England's Sarah Breeden, who stated that the Middle East conflict is “much less likely” to trigger an inflation surge like in 2022, though she added that any necessary rate hikes could wait until later this year. Meanwhile, the UK economy expanded by 0.6% in Q1 2026, with annual growth reaching a stronger-than-expected 1.1%, driven by a surprising 0.3% rise in March.
2026-05-14
Pound Nears Two-Week Low as UK Leadership Speculation Swirls
The British pound held just above $1.35 on Thursday, near its weakest level since late April, as investors weighed ongoing political uncertainty against strong GDP growth and optimism surrounding the US-China summit. The UK economy expanded by 0.6% in Q1 2026, with annual growth reaching 1.1%, driven by a surprising 0.3% rise in March. Meanwhile, political tensions have escalated following the resignation of Health Secretary Wes Streeting, who is now expected to launch a leadership challenge against Prime Minister Keir Starmer. Angela Rayner, another potential contender, was cleared by HMRC in a tax investigation this morning, potentially paving the way for her to join the race. On monetary policy, Bank of England Deputy Governor Sarah Breeden stated that the Middle East conflict is “much less likely” to spark an inflation surge like in 2022, adding that any necessary rate hikes could wait until later this year.
2026-05-14
Pound Weakens on UK Leadership Uncertainty
The pound fell to $1.35, its lowest since late April, after The Times reported that Health Secretary Wes Streeting is preparing to launch a leadership challenge against Prime Minister Keir Starmer. Starmer, whose cabinet has remained largely intact despite a few junior minister resignations, has reaffirmed his intention to stay in office despite pressure from several ministers and over 80 Labour lawmakers calling for his resignation following the party’s poor local election results. At the same time, stalled US-Iran negotiations and the closure of the Strait of Hormuz have kept oil prices high, with markets pricing in nearly three Bank of England rate hikes by year-end. Investors also awaited a slew of economic data due Thursday, including first-quarter GDP.
2026-05-13