Pound Reverses Gains After Burnham Fiscal Pledge Fails to Inspire

The British pound gave up earlier gains and turned negative on the day after Andy Burnham was named the new Prime Minister. In his first remarks, Burnham pledged to adhere to the fiscal rules set by former Chancellor Rachel Reeves, who has resigned.

GBP/USD traded at 1.3425, retreating from a daily high reached earlier in the session. The market appeared unimpressed by the continuity pledge, with the currency failing to hold onto its initial positive reaction.

The reversal highlights lingering uncertainty around the UK's fiscal direction despite Burnham's commitment to existing policy frameworks.