Uncertainty over UK Chancellor position leads to sharp decline in Pound Sterling

Jin10 data reported on July 2nd, Wednesday, the UK government bond yields surged sharply, and the pound plummeted. The day before, the UK government was forced to make significant concessions on its welfare cuts plan. After UK Chancellor Reeves showed signs of unease in Parliament, UK bond yields accelerated their decline. Prime Minister Starmer refused to confirm whether Reeves would continue as Chancellor. Michael Brown, a strategist at Pepperstone, said, "Given that Starmer had previously indicated fairly confidently that Reeves would remain until the next election, the market sees this as a definitive sign that she won't stay in this position for long." "It seems that Reeves is about to leave soon, and her successor—whoever that may be—will significantly relax fiscal rules." Although Starmer's press secretary stated that Reeves has not yet offered her resignation, this speculation continues to disrupt the UK market.