Analysis: Green Party victory in UK by-election triggers volatility in British pound.

Convera's George Vessey stated that the fluctuations in the British pound after the ruling Labour party's defeat in Thursday's by-elections reflected the multiple impacts of the result. He said that the pound briefly rose as the Green Party, rather than the UK Reform Party, won the elections, but then resumed its previous downward trend; the UK Reform Party was seen as potentially bringing about the biggest policy shift. However, he stated that concerns about the stability of Prime Minister Keir Starmer's leadership have weakened, with a risk of a more left-wing successor emerging. He said that this situation "increases the uncertainty of the UK's fiscal and macroeconomic trajectory." The pound is expected to decline for the fourth consecutive week against the euro, marking its worst monthly performance since June. Data from the London Stock Exchange Group showed that the euro rose 0.1% against the pound to 0.8753 pounds, hitting a 10-week high of 0.8764 pounds earlier.