According to a research note from ING's Chris Turner, the British pound has remained broadly resilient despite calls for UK Prime Minister Keir Starmer to resign following a controversy over the appointment of Peter Mandelson. Market attention today will focus on the testimony of Ollie Robbins. Mandelson was appointed despite not passing the necessary background checks for the role, a decision made while Robbins was serving in the UK Foreign Office's civil service.
Turner stated, "However, data from the prediction platform Polymarket shows only a 39% probability that Starmer will leave office before June (and 65% before December), which is one reason why the pound has not seen significant selling pressure."
The euro was flat against the pound at 0.8709. ING expects the exchange rate to hold above the 0.8685-0.8700 range.
Comments