Sterling maintained its strength yesterday and is still strong this morning ahead of the Prime Minister’s cabinet reshuffle. Most of the cabinet have only been in their positions since the Conservative leadership race in July and whilst senior figures aren’t expected to be affected, others could be moved or replaced.
It’s thought that the ministers chosen will signal the course of upcoming UK-EU trade talks this year, depending on whether they favour a hard or soft Brexit. The pound could, therefore, be sensitive to any announcements today.
News that the government has given the HS2 rail project the go ahead may provide some continued support for sterling. Despite the controversy surrounding HS2, the project could be seen as a positive for economic growth. The announcement could also indicate that further spending plans will be revealed in the upcoming Budget, which is due to be delivered in March.
