Strategists: If the Labour Party loses in local elections, the pound faces downside risk

Golden Ten Data reported on April 17 that Ebury strategist Matthew Ryan stated in a report that if the ruling UK Labour Party underperforms in the local elections in May, the pound will face downside risks. He noted that this would further increase pressure on UK Prime Minister Starmer’s position, and if the market anticipates that a potential successor may lead to higher spending and debt, the pound will remain under pressure. Following media reports that former ambassador to the US, Peter Mandelson, failed a security review but was still approved for the position, Starmer’s fate has been called into question. Ryan pointed out that betting markets now see the probability of Starmer stepping down before the end of June as real.