Sterling Eases as Burnham Takes Over

2026-07-17 11:36 By Joana Ferreira 1 min. read

Sterling fell below $1.345, pulling back from Thursday's two-month high of $1.354, after Andy Burnham was officially confirmed as the new leader of the UK Labour Party following an uncontested leadership race.

Burnham succeeds Keir Starmer and is expected to become prime minister next week.

In his first speech as leader, Burnham said Labour was united and committed to putting political power "at the service of people," while pledging to build on the foundations laid by Starmer.

Markets are now focused on Burnham's choice of Chancellor.

Reports that Shabana Mahmood is the frontrunner have reassured investors, easing concerns over a more expansionary fiscal stance.

Meanwhile, escalating tensions in the Middle East have pushed oil prices to one-month highs, adding to inflation risks and reinforcing expectations that the Bank of England will continue tightening policy.

Markets now fully price in a rate hike by year-end, with another increase expected by March 2027.



News Stream
Sterling Eases as Burnham Takes Over
Sterling fell below $1.345, pulling back from Thursday's two-month high of $1.354, after Andy Burnham was officially confirmed as the new leader of the UK Labour Party following an uncontested leadership race. Burnham succeeds Keir Starmer and is expected to become prime minister next week. In his first speech as leader, Burnham said Labour was united and committed to putting political power "at the service of people," while pledging to build on the foundations laid by Starmer. Markets are now focused on Burnham's choice of Chancellor. Reports that Shabana Mahmood is the frontrunner have reassured investors, easing concerns over a more expansionary fiscal stance. Meanwhile, escalating tensions in the Middle East have pushed oil prices to one-month highs, adding to inflation risks and reinforcing expectations that the Bank of England will continue tightening policy. Markets now fully price in a rate hike by year-end, with another increase expected by March 2027.
2026-07-17
Pound Holds Weekly Gain as Burnham Nears Leadership
The British pound eased to around $1.346 after reaching a two-month high of $1.354 earlier in the week, but remained on track for a weekly gain against the US dollar. Markets have largely priced in Andy Burnham’s expected confirmation as Labour leader today, with attention now turning to his choice of Chancellor. Reports that Mahmood is the leading candidate have reassured investors and eased concerns over a more expansionary fiscal approach under Ed Miliband. Meanwhile, rising tensions in the Middle East have pushed oil prices to one-month highs, reinforcing expectations that the Bank of England will continue tightening monetary policy. Markets now fully price in a rate hike in November, with another increase expected by March 2027. UK GDP rose 0.1% in May after a 0.1% contraction in April, while growth over the three months to May reached 0.7%, beating forecasts of 0.5%.
2026-07-17
Pound Near Two-Month Peak on Mahmood Chancellor Reports
The British pound held above $1.35, its strongest level since mid-May, after rallying on Wednesday amid reports that Home Secretary Shabana Mahmood is set to be appointed chancellor by Andy Burnham. Investors also assessed fresh data showing the UK economy returned to growth in May, with GDP rising 0.1% after a 0.1% contraction in April. With Burnham's confirmation largely priced in, market focus has shifted to his choice for the Treasury amid the UK's fragile public finances. Reports naming Mahmood as the leading candidate helped reassure investors, easing concerns that Burnham could instead appoint Ed Miliband, who is widely seen as favoring a more expansionary fiscal approach. Meanwhile, escalating tensions in the Middle East have pushed oil prices to one-month highs, reinforcing expectations that the Bank of England will continue tightening monetary policy. Markets now fully price in a rate hike in November, with another increase expected by March 2027.
2026-07-16