Markets Reward Stability as Burnham Rises and Iran Talks Progress

Sterling outperformed as UK political uncertainty eased, with Andy Burnham emerging as the leading contender to replace Keir Starmer and Wes Streeting backing him, reducing the odds of a lengthy Labour leadership contest. The article says markets viewed this as improving visibility on UK fiscal and economic direction, helping GBP even as the broader dollar trend remained supported by hawkish Fed expectations. Risk sentiment also improved on progress in US-Iran talks, which further softened demand for safe havens like JPY and CHF. The piece frames the move as a stability trade: investors rewarded clearer political succession and diplomatic progress, but did not see it as enough to overturn the broader FX backdrop dominated by US monetary policy.