Matthew Ryan of Ebury said in a note that sterling could weaken after its recent
rebound, which he attributes to optimism following Keir Starmer's resignation
and the prospect of Andy Burnham becoming UK prime minister. "We think the
rebound is partly justified but is increasingly a buy the rumor, sell the fact
case," Ryan said. He added that sluggish UK growth and uncertainty over future
fiscal policy could weigh on sterling.
