Mitsubishi UFJ: Due to financial concerns, the pound is facing new downward risks.

Mitsubishi UFJ analyst Lee Hardman said in a report that the pound faces a new round of declines following increased political uncertainty in the UK and new fiscal concerns on Wednesday led to a sell-off of the pound. UK Prime Minister Starmar initially did not support Chancellor Rishi Sunak in parliament on Wednesday. Previously, pressure from some Labour Party members led to a 180-degree turnaround on welfare reform issues by the government. Hardman stated that the policy U-turn has weakened confidence in the Labour leadership and raised questions about the seriousness of the party's fiscal policy overhaul. "Unless confidence is quickly restored, the pound will continue to trade on a weaker basis than we expected."