British pound dipped against the dollar on Monday as investors followed UK cabinet reorganization, though majority hold the opinion that bar any big surprises, the outcome would hardly drive up the pound.
UK PM said that the results of a reshuffle would be reported soon, while several media outlets said foreign, finance, and Brexit ministers were going to retain their posts.
Pound has stood at $1.30 - $1.36 for over 4 months, and traders believe that for it to go beyond that some significant advances in Brexit negotiations are necessary, or a pack of solid economic data that moves the following interest rate hike by the BOE to an earlier date. It went lower by 0.3% to $1.353 today.
According to the Daily Telegraph, Theresa May would open a new job position to make constant updates to the Cabinet on measures for Brexit with no trade deal, which is an unwelcome result, but the precautionary actions are being taken.
This kind of post would be regarded as quite positive by markets as worries of government unpreparedness for a case without trade deal would be alleviated, but the reshuffle wouldn’t have any effect on the pound, said Geoffrey Yu of UBS Wealth Management.