The pound is now down 0.5% against the euro, with one pound currently worth €1.15 after Morgan McSweeney resigned yesterday. The pound also dropped 0.1% against the dollar. Meanwhile, 10-year gilts climbed to above 4.54% – up three basis points. Jane Foley, a foreign exchange strategist at Rabobank, told Bloomberg:
“The market will be very wary of UK political jitters particularly if it starts to look likely that the next PM may come from the left wing of the Labour party.”
The markets are already pricing in a new PM. The line that a change of leader would trigger a bad reaction won’t stick…
Asked by Lobby hacks about his past comments on Trump (“any UK politician who gave Trump the time of day should be ashamed right now”) Burnham was blithe:
“Politicians say things throughout their career, but now the important thing is to focus on the moment you are in.”
Were it so easy…