Last week's local election results have plunged Starmer's leadership into question, but continuing impact on currency markets remains to be seen. Sterling is supported by a broader risk-on sentiment, while the euro is held in check by growth concerns despite a 'live' ECB June meeting. The dollar, meanwhile, drifts without conviction as the Fed sits firmly on hold. The ongoing political situation will be one to watch this week.
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Current FX rates: 11 May 2026
| Currency pair | Rate |
|---|---|
| gbp usd | 1.3600 |
| eur usd | 1.1768 |
| gbp eur | 1.1556 |
Rates correct as of 12:20pm on Monday 11 May but may now have changed.
The Big 3
A deeper look at the performance of major currency pairs this week. Full reports below.
Political turbulence so far fails to dent sterling as risk-on tone prevails
GBP/USD held a modest upside bias, supported by risk-on sentiment and the afterglow of a hawkish BoE. Labour’s local election results have so far failed to dislodge sterling, though the risk remains and bond yields are on the rise. Starmer used today’s speech to frame closer EU ties as his defining mission, but an increasing number of Labour MPs are calling for him to go. Thursday’s UK GDP, expected to show a 0.2% contraction, and tomorrow’s US CPI are the key releases.
Euro drifts higher on a listless dollar as ECB signals patience
EUR/USD edged higher, driven more by dollar softness than euro strength. Lagarde stressed “massive uncertainty” and declined to signal whether rates will move in June, though markets still see it as ‘live’. Growth concerns continue to cap the euro’s upside, while the dollar remains directionless with the Fed in holding-pattern mode.
ECB keeps June hike alive amidst Labour leadership drama
GBP/EUR remained capped, with the euro underpinned by expectations of a possible June hike. The focus for sterling is political. If Starmer and Reeves hold on, their fiscally responsible approach should continue to provide support, but a challenge from the left would be less market-friendly. UK GDP on Thursday adds to the domestic headwinds.
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Looking forward
Key dates for your calendar.
- Monday: China CPI. US home sales.
- Tuesday: Germany and US CPI. Australia budget and consumer/business confidence.
- Wednesday: Eurozone reports GDP. US reports PPI. France and Sweden report CPI. ECB Lagarde and Fed speeches.
- Thursday: UK GDP. US initial jobless claims and retail sales. Fed speeches.
- Friday: Russia and Hong Kong report GDP. Jerome Powell’s term as Fed chair ends. US industrial production.
What we’re talking to our clients about
IFX Payments is service led. Here are some of the conversations we’re having:
- IFX have moved to a new office!
- The local election results and Starmer position
- Ongoing Strait of Hormuz issues
The contents of this article do not constitute financial advice and are provided for general information purposes only. While the content is based on information believed to be accurate at the time of publication, no guarantee is provided.