Mitsubishi UFJ: If the UK Labour Party loses in local elections, the pound may fall.

Lee Hardman of Mitsubishi UFJ Bank stated in a report that if the ruling British Labour Party loses in a one-off local election in Gordon and Denton on Thursday, the pound may fall. In the 2024 general election, the Labour Party easily won in the Gordon and Denton constituency. Polls show a three-way race between the Labour Party, the UK Reform Party, and the Green Party. Hardman said, "A Labour Party defeat could increase pressure on Prime Minister Keir Starmer and exacerbate concerns about the party's declining support ahead of the May local elections." The pound fell 0.2% to $1.3528. The euro rose 0.2% to 0.8720.