MUFG: Pound Will Be Dragged Down If UK Political Uncertainty Rises Further

Golden Ten Data reported on May 11 that Mitsubishi UFJ analyst Lee Hardman stated in a report that the British ruling Labour Party suffered a major defeat in last week’s local elections. If political uncertainty in the UK continues to rise, the pound may remain weak. He said, "For (UK Prime Minister) Keir Starmer, the writing already seems to be on the wall—now the main question is how much longer he can remain in office." Hardman noted that if a new leader in the future pushes Labour further to the left, it would at least weigh on the pound in the short term, since markets would worry about increased fiscal spending, further deteriorating the UK’s public finances. Starmer is scheduled to deliver a keynote speech at 17:00 (GMT+8).