British Prime Minister Keir Starmer is expected to announce his resignation as early as Monday, June 22, according to reports from Channel News Asia.
The potential exit coincides with the swearing-in of his likely successor, Labour MP Andy Burnham, marking a pivotal transition in UK leadership amid ongoing internal party pressures.
Starmer’s reported decision to step down follows mounting pressure from within the Labour Party, with rival figures positioning themselves for the top job.
The prospect of a sudden change in premiership introduces fresh political risk for UK assets.
Sterling has faced headwinds from domestic policy debates, and the uncertainty surrounding the leadership handover could exacerbate volatility in the currency and gilt markets.
Traders are likely to monitor the pound’s reaction closely, particularly against the dollar and euro, as markets price in the stability of the incoming administration.
Starmer’s reported decision to step down follows mounting pressure from within the Labour Party, with rival figures positioning themselves for the top job.