Rabobank Warns of Renewed Pressure on Pound Sterling

Rabobank analysts warn that renewed pressure on Pound Sterling exchange rates is expected as concerns over Prime Minister Andy Burnham's spending plans continue to unsettle the gilt market.

The British Pound has faced a difficult combination of political uncertainty, elevated UK bond yields, and doubts over how the new government intends to fund its policy agenda.

Rabobank notes that despite the appointment of experienced Chancellor Healey, uncertainty surrounding the government's fiscal strategy could keep both gilts and the Pound under pressure.