• Political noise escalating as Labour backbenchers push hard for Starmer to go

• GBP feeling it as cable presses 1.35, EUR/GBP eyeing a test of 0.87

• Confirmed resignation likely leads to another leg lower in GBP

• Attention will quickly pivot to the leadership, who replaces Starmer now matters more

• Streeting seen as status quo, Burnham skews further left, which adds a layer of risk for gilts

• Looking at the historical playbook on PM resignations, GBP weakness tends to be contained

• Outside of Truss, GBP upside post-resignation has also been limited
GBP performance during PM resignations


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))