Pound May Decline if Labour Loses By-Election, Says MUFG

MUFG has indicated that the British pound could face a decline if the ruling Labour Party loses the by-election in the Gordon and Denton area scheduled for Thursday. According to Jin10, the Labour Party had previously secured a comfortable victory in this constituency during the 2024 general election. Current polls suggest a tight race among the Labour Party, the Reform Party, and the Green Party. A loss for Labour could increase pressure on Prime Minister Keir Starmer and heighten concerns within the party about declining support, particularly ahead of the regional elections in May.