The British pound fell below $1.34, reaching its lowest level since early April and heading for a near 2% weekly loss against the US dollar. The decline followed news that Andy Burnham, seen as the least market-friendly candidate for bond investors, could challenge Prime Minister Keir Starmer after MP Josh Simons stepped aside. Other potential contenders include Wes Streeting, Ed Miliband, and Angela Rayner, with Rayner carrying a similar risk profile to Burnham. Meanwhile, inflation concerns intensified after US President Donald Trump’s comment that “we don’t need the Strait of Hormuz open” drove crude prices higher. Traders now anticipate roughly 70 basis points of Bank of England rate hikes this year. Huw Pill, the BOE’s chief economist, who backed a rate increase at the last meeting, advocated for further tightening to offset inflationary pressures from the energy shock tied to the war.