British Pound Hits 4-week Low

The British pound weakened to further to $1.34 on Thursday, the lowest in over one month, after major resignations signaled a heating shuffle for the Prime Minister cargo. MP Josh Simons resigned to allow Manchester mayor Andy Burnham to run for parliament, and Health Secretary Wes Streeting resigned to make himself available for PM. Both challenge incumbent 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 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. 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.

GBPUSD decreased to 1.34, the lowest since April 2026. Over the past 4 weeks, British Pound US Dollar lost 0.81%, and in the last 12 months, it increased 1.1%.

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.