UK Labour party by-election defeat raises concerns, pound/euro falls to 10-week low.

The pound fell to a 10-week low against the euro as the UK ruling party Labour suffered a defeat in a special regional by-election, raising concerns about Prime Minister Stammer's leadership. The Green Party won the Gordon and Denton constituency elections, with Labour coming in third behind the Reform Party. Labour easily secured the seat in the 2024 election, but its support has since declined. This news has put a question mark on Stammer's future before the wider local elections in May in the UK. Apart from political uncertainty, the market is also worried that Stammer may be replaced by a leader more inclined to increase government spending, leading to a deterioration of public finances.