Sterling is showing resilience to political headwinds but this probably won't last, Monex Europe analysts say in a note. "Of note, the government's long-delayed Defence Investment Plan offered little indication of how the government will pay for increased spending, despite the promised sums underwhelming already low expectations," they say. With fiscal risks and political uncertainty still elevated, Monex continues to see risks of sterling falling, the analysts say. Sterling drops 0.1% to $1.3247 versus a stronger dollar but rises to a 10-month high of 0.8598 per euro, according to LSEG. Prime Minister Keir Starmer announced his resignation last week. (renae.dyer@wsj.com)
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Sterling's Resilience to Fiscal Risks Unlikely to Last — Market Talk
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Sterling is showing resilience to political headwinds but this probably won't last, Monex Europe analysts say in a note. "Of note, the government's long-delayed Defence Investment Plan offered little indication of how the government will pay for increased spending, despite the promised sums underwh…