The pound held lower at $1.352, retreating from the near two‑month highs reached last week, as ongoing political uncertainty in the UK and deadlocked US‑Iran talks continued to dampen risk appetite. Prime Minister Keir Starmer’s cabinet has remained largely intact despite a handful of junior minister resignations, and he has reiterated his determination to stay in office. Nonetheless, pressure for his departure persists from several ministers and more than 80 Labour MPs following the party’s weak local election performance, amid concerns that a leadership contest could lead to looser fiscal policy aimed at regaining voter support.
On the monetary policy front, markets are currently pricing in nearly three Bank of England interest rate increases by year‑end. Investors are now focused on a raft of data due on Thursday, including first‑quarter GDP figures.
