FX.co ★ Pound Weakens on UK Leadership Uncertainty

The pound slid to $1.35—its weakest level since late April—after The Times reported that Health Secretary Wes Streeting is preparing to mount a leadership challenge against Prime Minister Keir Starmer. Starmer, whose cabinet has remained largely intact despite several junior ministerial resignations, has reiterated his determination to remain in office, even as multiple ministers and more than 80 Labour MPs have urged him to step down following the party’s poor local election performance. At the same time, stalled US–Iran talks and the closure of the Strait of Hormuz have kept oil prices elevated, with markets now pricing in almost three Bank of England rate increases by the end of the year. Investors are also awaiting a raft of economic data due on Thursday, including first-quarter GDP.