- EUR/GBP falls as markets welcome UK Prime Minister Keir Starmer’s resignation.
- Andy Burnham emerges as a leading contender to replace Starmer.
- Traders await preliminary PMI data and a busy week of ECB and BoE speakers.
EUR/GBP comes under pressure on Monday as markets react positively to UK Prime Minister Keir Starmer’s resignation, with the British Pound (GBP) outperforming most of its major peers. At the time of writing, the cross trades around 0.8659, retreating from a one-month high of 0.8689 touched earlier in the day.
Speaking outside 10 Downing Street, UK PM Starmer said he would ask Labour’s National Executive Committee (NEC) to set a timetable for the leadership contest. He added that nominations for the party’s new leader would open on July 9.
Starmer also said he would remain in office until a successor is chosen and would do everything he could to ensure an orderly handover.
The Labour Party suffered heavy losses in local elections held last month. Calls for his resignation gathered pace after several junior ministers quit the government, raising doubts over his leadership.
Andy Burnham, who returned to Parliament earlier this year, is widely seen as one of the leading contenders to replace Starmer. He is due to be sworn in later on Monday as the MP for Makerfield after winning a by-election last week.
Looking ahead, traders will continue to monitor political developments in the UK. On the data front, the economic calendar is relatively light, with preliminary Purchasing Managers Index (PMI) data due on Tuesday and a busy week of central bank speakers ahead.
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