UK Chancellor Reeves is to limit the deregulatory drive as she seeks closer UK relations with the EU, according to FT

This development indicates a potential de-escalation of regulatory divergence between the UK and the EU, which could help stabilize economic relations and trade.

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Traders should watch for implications on GBP and UK-related assets, as closer ties may enhance market sentiment. However, the underlying tension remains, and the durability of such a policy shift is uncertain, possibly leading to volatility in affected sectors.

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