Commerzbank Warns Persistent UK Political Uncertainty Pressures GBP/USD

GBP/USD remains under pressure as Commerzbank warns on May 15 that ongoing UK political uncertainty creates a structural drag on sterling, with further downside until clarity emerges. The story escalated from Societe Generale's early May election risk alerts (0.2-0.5pp GDP hit) and Labour's May 11 local rout (1,200+ seats lost to Reform UK's 1,300+ gains), compounded by BoE's Greene urging caution on June hikes amid Iran war (42% odds) and Mann flagging gilt fragility (30-year yields at 1998 highs) limiting tightening. Mizuho forecasts 1.30 end-June, while Goldman, UOB, DBS cite USD strength and shifting political volatility drivers after pair's May 14 low of 1.3485 and hold at 1.3524.