Keir Starmer’s centre-left Labour Party secured a substantial majority in the UK general election, providing reassurance to the global currency market after years of volatility under the Conservatives.
The British pound maintained most of its gains against the Nigerian naira and other major currencies, bolstered by Labour’s electoral success and market confidence in economic stability under the new leadership.
Labour’s victory saw the pound sterling trading strongly, with the black market rate reaching N1,905 against the naira, despite improvements in the official market conditions. Investors are now focused on Starmer’s proposed tax policies and economic strategies aimed at fostering growth and improving public services in the UK.
Attention has shifted to Starmer’s first 100 days in office and his economic agenda, which includes maintaining fiscal restraint and stability. Market analysts anticipate potential shifts in Bank of England interest rates and GDP growth projections, influenced by Labour’s policies and economic outlook.
Meanwhile, currency traders await the release of U.S. non-farm payroll data, expected to impact Federal Reserve interest rate decisions amid signs of a slowing U.S. economy. Market expectations suggest possible rate cuts later in the year, depending on economic data trends.