Barclays Sees GBP Steady After Starmer Exit Despite Burnham Risks

As of June 23, Barclays forecasts the pound remaining broadly stable near $1.32 despite Keir Starmer's resignation. The story began June 21 with Starmer given until Tuesday to set an exit timetable or face cabinet revolt, triggering GBP/USD volatility on headline risk. Markets initially stabilized on reports of an autumn handover but weakened June 22 after the resignation, with the pair falling 0.2-0.3% to $1.3194-$1.3204. Credit Agricole warned that likely successor Andy Burnham's agenda, including wealth and capital gains taxes, could undermine fiscal discipline and pressure sterling further. Barclays counters that rate support and resilience to political shocks should keep EUR/GBP near 0.86.