German bank: As political uncertainty in the UK increases, the pound is falling.

With rising political uncertainty in the UK, the pound fell to a near two-week low against the euro. Prime Minister Keir Starmer faced a crucial cabinet meeting on Tuesday as he sought to gain support from his Labour party MPs to avoid a leadership challenge. Following a disastrous defeat for Labour in local elections last week, dozens of MPs publicly called for Starmer to step down. "The most important thing for the pound is the potential views of a successor," said Michael Pfister of Deutsche Bank in a report. He noted that Starmer has been committed to the goal of balancing the budget, while a potential successor may have different views. The euro rose 0.2% to reach a high of 0.8673 pounds, while the pound fell 0.4% to 1.3553 dollars.