Shabana Mahmood is set to become the next UK Chancellor of the Exchequer

UK political news is boosting sterling as FT reports Shabana Mahmood is set to become Britain’s next Chancellor of the Exchequer under incoming Labour leader Andy Burnham. Markets view Mahmood as fiscally disciplined and more business-friendly, reducing fears of expansive spending or a sharp policy shift. That perception is supporting UK government bonds and the pound. The article notes GBP/USD is breaking higher, trading at its strongest since late May and testing resistance around 1.34854, with the next swing high near 1.35089. Overall, the move reflects improved confidence in UK fiscal policy and a more stable Treasury outlook, though some uncertainty remains around future tax policy, including the possibility of a wealth tax later on.