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.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold remains vulnerable, targets $4,100

Gold retreats for the fourth consecutive day on Monday, targeting the key $4,100 mark per troy ounce. The precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.