United Kingdom PM Starmer weighs political future, set to announce exit plan on Monday

Dhwani Mehta FXStreet

Citing a source with knowledge of the matter, Reuters reported on Monday that the United Kingdom (UK) Prime Minister (PM) Keir Starmer was reassessing his political future on Sunday after rival Andy Burnham's decisive parliamentary election victory prompted additional ministers from the governing Labour Party to call for his resignation.

"Keir likes to think about things," the source said.

Further pressurizing Starmer, US President Donald Trump predicted on his Truth Social platform that "Keir Starmer will resign as Prime Minister of the United Kingdom".

Meanwhile, UK Business Minister Peter Kyle said the prime minister was reflecting on "the political challenges that he faces in this moment".

Kyle told LBC radio: "So I'm not going to deny the political challenges that he faces in this moment, but what I'm also not going to do is say there is ever anything inevitable about the days ahead.”

Cabinet ministers stated that Starmer will set out his intentions outside No 10 Downing Street on Monday, commencing a process of the UK installing its seventh PM in a decade.

Market reaction

The British Pound (GBP) is under moderate selling pressure in early trading following UK political headlines, with GBP/USD down 0.17% on the day at 1.3210 as of writing.

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.05%	0.19%	0.05%	0.13%	0.03%	0.08%	0.03%
EUR	-0.05%		0.14%	0.00%	0.07%	0.03%	0.06%	-0.02%
GBP	-0.19%	-0.14%		0.00%	-0.04%	-0.12%	-0.08%	-0.14%
JPY	-0.05%	0.00%	0.00%		0.08%	-0.02%	0.02%	-0.01%
CAD	-0.13%	-0.07%	0.04%	-0.08%		-0.11%	-0.07%	-0.08%
AUD	-0.03%	-0.03%	0.12%	0.02%	0.11%		0.06%	0.00%
NZD	-0.08%	-0.06%	0.08%	-0.02%	0.07%	-0.06%		-0.04%
CHF	-0.03%	0.02%	0.14%	0.00%	0.08%	-0.00%	0.04%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD sticks to neutral bias above 0.7100 amid bullish USD undertone

AUD/USD holds steady above 0.7100 during the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. Adding to this, the Fed's hawkish outlook supports the buck. However, bets on another RBA rate hike underpin the Aussie ahead of Governor Bullock's speech and Australian jobs data on Tuesday and Thursday, respectively.

USD/JPY steadies around 157.00 as BoJ's dovish rate hike undermines JPY

USD/JPY edges up at the start of a new week, stalling its retracement slide from 158.00, or a two-week top touched in reaction to the BoJ's dovish rate hike on Friday. Escalating tensions in the Middle East, along with bets for another Fed rate hike this year, lend some support to the US Dollar and the currency pair. Bulls, however, seem hesitant and await further geopolitical developments.

Gold remains depressed below $4,400 as Fed hike bets and Mideast jitters support USD

Gold struggles to capitalize on its recovery gains registered over the past two days and attracts fresh sellers at the start of a new week. The risk of a broader Middle East conflict helps the safe-haven US Dollar stall Friday's retracement slide from the highest level since late July. Moreover, the Fed's hawkish outlook supports the buck and keeps the non-yielding bullion depressed below $4,400.

The week ahead: Hawkish Fed sets the tone for flash PMIs, SNB decides on policy

The US dollar outperformed all its major peers this week, putting it on the front foot in anticipation of a hawkish Fed before Wednesday, and accelerating its advance after the central bank satisfied the hawkish market bets.

CFTC Report: Positioning turns more defensive as Yen longs build

The week in one sentence: Yen positioning surged into a sizeable net long in the week to September 15, while Oil buying accompanied a sharp price increase. CAD shorts also retreated, but Gold exposure remained crowded despite a lower price. Euro and Australian Dollar positioning weakened alongside softer currencies.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.