The British pound weakened to $1.32, approaching levels not seen since late March, as political uncertainty in the UK weighed on investor sentiment. Speculation intensified that Prime Minister Keir Starmer could soon announce his resignation, paving the way for a new Prime Minister. Reports suggest that Starmer is expected to outline a timetable for his departure on Monday and oversee an orderly transfer of power to Andy Burnham following the Greater Manchester mayor's victory in last week's by-election. But such a move is not certain. Markets are also awaiting further details on the political transition, alongside any indications regarding the government's future fiscal policy. On the monetary policy front, the Bank of England left interest rates unchanged at 3.75% this month and maintained a cautious stance. The central bank also revised down its forecast for peak inflation in the fourth quarter of 2026 to 3.25%, from a previous estimate of 3.6%.