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The pound recovers from the fall caused by fiscal concerns.
On July 3, Jin10 reported that the British pound rebounded after falling on Wednesday, when Prime Minister Starmer seemed not to confirm in Parliament that Chancellor Reeves would remain in office. However, a spokesperson for the Prime Minister later stated that Reeves had Starmer's full support. The Labour government was forced to make significant concessions on welfare reform. Analyst Nikos Chabralas from Tradu.com said in a report that the prospect of further tax increases or increased borrowing could disrupt the market. This loss of confidence could bring "trouble" to the pound.