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GBPUSD rises as Shabana Mahmood is set to become UK chancellor

Market participants linked the move to expectations of fiscal restraint and policy stability, with GBPUSD testing a target near 1.34854.

Reported · Written up by our desk · Major Pairs

Forexlive reports that Shabana Mahmood is set to become Britain’s next Chancellor of the Exchequer, a development market participants are treating as supportive for the pound and UK government bonds.

The outlet says Mahmood is viewed as a fiscally disciplined, centrist Labour figure, with expectations she would emphasize responsible public finances and stable economic policy, reducing the perceived risk of a sharp shift toward more expansionary fiscal plans.

Keir Starmer is set to step down after delivering his final Prime Minister’s Questions, and Andy Burnham is expected to take office as Labour leader unopposed next Monday, with early cabinet appointments including Mahmood presented as signaling a more centrist approach.

In FX trading, Forexlive says GBPUSD is breaking higher and testing the next target near 1.34854, with an additional level around 1.35089 if the pair moves above that area.

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