The Euro (EUR) ticks lower against the British Pound (GBP) on Monday, trading at 0.8495 at the time of writing, as last weeks rebound from 13-month lows at 0.8455 failed to consolidate above 0.8500.
The Sterling is picking up across the board as the market braces for the nomination of the former Mayor of Manchester, Andy Burnham, who is expected to replace Keir Starmer, who stepped down as Prime Minister in June after only two years in office,
Burnham, who will become the seventh UK Prime Minister in just over a decade, has pledged in an interview with The Times newspaper to release a 10-year economic plan to “rewire” the UK and improve peoples lives.
The Pound has kept a solid tone since Burnham was presented as the best-positioned candidate to replace Starmer, as he strived to calm markets, promising a responsible fiscal policy. Investors, however, are likely to keep a cautious stance with the GBP, awaiting the identities of the Cabinets members.
The Euro, on the other hand, remains on its back foot, weighed by the escalating hostilities in Iran and the higher Oil prices, as the barrel of Brent Crude climbed to fresh one-month highs, a few cents below $90.00 on Monday. In this context, the European Central Bank (ECB) is widely expected to stand pat on rates at its monetary policy meeting, due later this week, but President Cristine lagarde will, most likely, be questioned about a rate hike in September.