UK Fiscal Concerns Could Weigh on Sterling
UK Fiscal Concerns Could Weigh on Sterling
Rabobank analyst Jane Foley warns that sterling faces further declines due to fiscal concerns stemming from a potential leadership challenge to UK Prime Minister Keir Starmer. According to Foley, left-leaning Labour members Andy Burnham and Angela Rayner are favorites to win any leadership contest, which could raise fears about increased debt issuance.
Although Burnham has insisted he would stick to fiscal rules, he might raise taxes to support spending plans, potentially worrying investors. Sterling fell 0.1% to $1.3414, while the euro rose 0.2% to a nine-day high of 0.8672 pounds.
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