The Sterling pound today rallied to 1-week highs as the British Prime Minister Boris Johnson announced a major cabinet reshuffle that saw several ministers replaced. The GBP/USD currency pair started rallying hours before the official announcement as some ministers such as Sajid Javid resigned ahead of the reshuffle.
The GBP/USD currency pair today rallied to a high of 1.3069 as the reshuffle proceeded having risen from a low of 1.2944 in the late Asian session and was trading near its daily highs at the time of writing.
The currency pair fell during the Asian session but reversed course and headed higher during the early London session. Investors bid up the pound ahead of the cabinet reshuffle amid a lack of Brexit headlines and an empty UK docket. The pair spiked higher in the afternoon after media reports that Sajid Javid the Chancellor of the Exchequer had resigned and Rishi Sunak was taking over the Treasury. The pair kept rallying as details emerged of the ministers that were leaving the cabinet, those promoted, and the new appointees. Jacob Rees-Mogg was retained as the leader of the House of Commons, while Stephen Barclay, the former Brexit secretary, was appointed Secretary to the Treasury.
The release of the upbeat US Consumer Price Index report for January by the Bureau of Labor Statistics had a muted impact on the currency pair. UK political headlines mostly drove the cable’s performance during the American session.
The currency pair’s future performance is likely to be affected by British news headlines and US macro reports.
The GBP/USD currency pair was trading at 1.3051 as at 16:56 GMT having rallied from a low of 1.2944. The GBP/JPY currency pair was trading at 143.31, having risen from a low of 142.14.
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