FX.co ★ Sterling Edges Down, Holds Firmly Above $1.32

The British pound softened against a stronger US dollar but held comfortably above the $1.32 level, as investors weighed easing political uncertainty against weaker UK economic data. Sterling surrendered part of the previous session’s advance as the dollar regained momentum and broader risk sentiment turned more cautious. Markets took some comfort from signs that a drawn-out Labour leadership contest now appears less likely after Keir Starmer announced his resignation. Andy Burnham is increasingly viewed as the frontrunner to succeed him, and support from former health secretary Wes Streeting has further reduced the perceived risk of a prolonged leadership struggle. On the data front, the June flash PMI survey painted a weaker picture, with the composite index sliding to a 14‑month low of 49.4, undershooting expectations and indicating a second consecutive month of contraction. Rising input costs and faster services inflation continue to cloud the Bank of England’s policy outlook.