Pound falls as UK Labour Party loses special election

The pound fell to a 10-week low against the euro, following a defeat for the UK ruling party Labour in a special local election, sparking new concerns about Prime Minister Keir Starmer's leadership. The Green Party won the elections in Gorton and Denton, with Labour coming in third after the UK Reform Party. Labour had easily won the seat in the 2024 general election, but has since seen a decline in support. This news has raised doubts about Starmer's future ahead of the larger local elections in May. In addition to political uncertainty, there are concerns that Starmer may be replaced by a leader who supports increasing fiscal spending, leading to deteriorating public finances. Data from the London Stock Exchange Group shows the euro rising to a high of 0.8764 pounds. The pound fell 0.1% to 1.3461 dollars.