The pound erased early losses and swung higher on Monday after Prime Minister Sir Keir Starmer confirmed his plan to step down. Sterling rose 0.05% to 1.324 US dollars and 0.07% to 1.154 euros, recovering from a 0.3% decline before the speech. The currency has lost around 3% since February amid leadership threats, while Andy Burnham’s return to Westminster after winning the Makerfield by-election paves the way for a leadership bid. UK government bond yields were steady, with the 10-year yield flat at 4.845%, and the FTSE 100 Index remained just over five points lower at 10,357.97. Analysts noted that the strong possibility of Burnham as the sole candidate boosted sterling, and traders are bracing for further volatility as they await details on his policy stance and the leadership process.