Sterling weakens amid political turmoil and interest rate cut expectations
Sterling fell on Monday as political turmoil hit Downing Street after a key aide resigned. Growing expectations for rate cuts also weighed on the currency.
Insights:
Morgan McSweeney, the chief of staff to Sir Keir Starmer, resigned on February 9, 2026, after stating he took responsibility for advising the head of government to choose Peter Mandelson as ambassador to the United States. This political development coincided with a drop in the pound sterling against the euro and the US dollar. The decision followed concerns regarding the former cabinet minister's known links to Jeffrey Epstein, for which the departing official accepted accountability.
