Sterling Recovers Slightly Ahead of Burnham’s Speech

2026-06-29 07:54 By Joana Ferreira 1 min. read

The British pound rose to $1.322 on Monday, attempting to rebound from a seven-month low, as investors are closely watching Andy Burnham’s upcoming speech for insights into his economic approach.

Burnham, the sole declared candidate to succeed Prime Minister Keir Starmer, is expected to advocate for more expansionary fiscal policies after returning to Westminster this month.

Sterling remains down over 1.5% against the USD this month, the sharpest decline since March, amid domestic political uncertainty following Starmer’s resignation and a stronger dollar.

The dollar’s strength stems from an interim US-Iran peace deal and shifting expectations for US interest rates.

Since the ceasefire reopened the Strait of Hormuz, oil prices and inflation expectations have dropped, leading markets to scale back bets on Bank of England rate hikes.

Meanwhile, Fed Chair Kevin Warsh’s hawkish stance has reinforced expectations of US rate increases this year.



News Stream
Sterling Recovers Slightly Ahead of Burnham’s Speech
The British pound rose to $1.322 on Monday, attempting to rebound from a seven-month low, as investors are closely watching Andy Burnham’s upcoming speech for insights into his economic approach. Burnham, the sole declared candidate to succeed Prime Minister Keir Starmer, is expected to advocate for more expansionary fiscal policies after returning to Westminster this month. Sterling remains down over 1.5% against the USD this month, the sharpest decline since March, amid domestic political uncertainty following Starmer’s resignation and a stronger dollar. The dollar’s strength stems from an interim US-Iran peace deal and shifting expectations for US interest rates. Since the ceasefire reopened the Strait of Hormuz, oil prices and inflation expectations have dropped, leading markets to scale back bets on Bank of England rate hikes. Meanwhile, Fed Chair Kevin Warsh’s hawkish stance has reinforced expectations of US rate increases this year.
2026-06-29
Sterling Eases to 7-Month Low
The British pound weakened below $1.32, nearing its lowest level in seven months, as investors balanced easing political uncertainty with weaker UK economic data. Investors welcomed signs that a prolonged Labour leadership contest was becoming less likely after Keir Starmer announced his resignation. Andy Burnham is now seen as the leading candidate to replace him, with backing from former health secretary Wes Streeting reducing the risk of a drawn-out leadership battle. On the economic front, June flash PMI data showed a weaker picture, with the composite index falling to a 14-month low of 49.4, below expectations and signalling a second consecutive month of contraction. Rising input costs and accelerating services inflation continue to complicate the Bank of England’s policy outlook.
2026-06-24
Sterling Edges Down, Holds Firmly Above $1.32
The British pound weakened against a firmer US dollar but remained comfortably above $1.32 as investors balanced easing political uncertainty with weaker UK economic data. Sterling gave back some of the previous session’s gains as the dollar regained ground and broader market sentiment softened. Investors welcomed signs that a prolonged Labour leadership contest was becoming less likely after Keir Starmer announced his resignation. Andy Burnham is now seen as the leading candidate to replace him, with backing from former health secretary Wes Streeting reducing the risk of a drawn-out leadership battle. On the economic front, June flash PMI data showed a weaker picture, with the composite index falling to a 14-month low of 49.4, below expectations and signalling a second consecutive month of contraction. Rising input costs and accelerating services inflation continue to complicate the Bank of England’s policy outlook.
2026-06-23