Pound Rallies to 1-Week Highs as PM Johnson Reshuffles His Cabinet

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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