UK Chancellor of the Exchequer Rachel Reeves resigns as Andy Burnham reshuffles cabinet
- Rachel Reeves leaves the government as new Prime Minister Andy Burnham launches a cabinet reshuffle.
- Investors are assessing the future direction of the UK's fiscal policy.
- UK government bond yields move sharply higher following the announcement.
The United Kingdom entered a new period of political uncertainty after Rachel Reeves stepped down as Chancellor of the Exchequer as part of the first cabinet reshuffle led by newly appointed Prime Minister Andy Burnham.
Rachel Reeves said on social media that serving as Chancellor had been "the privilege of my life" and wished her successor and the new government "the very best of luck." According to several UK media outlets, she declined an alternative cabinet position before returning to the backbenches.
The change comes as investors assess the economic priorities of the new administration and the direction of the UK's fiscal policy. The lack of an immediate announcement regarding Reeves' successor at the Treasury has added to uncertainty over the economic strategy of the Burnham government.
Markets reacted swiftly to the news. The yield on the UK 10-year Gilt climbs to near 5.050% at the time of writing, reflecting a higher risk premium demanded by investors. Meanwhile, Pound Sterling (GBP) remains under pressure, with GBP/USD falling 0.24% for the day to trade near 1.3420.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.23% | 0.11% | 0.28% | -0.29% | -0.06% | 0.37% | |
| EUR | -0.24% | 0.02% | -0.13% | 0.02% | -0.53% | -0.33% | 0.12% | |
| GBP | -0.23% | -0.02% | -0.15% | 0.00% | -0.55% | -0.33% | 0.08% | |
| JPY | -0.11% | 0.13% | 0.15% | 0.19% | -0.39% | -0.13% | 0.26% | |
| CAD | -0.28% | -0.02% | -0.01% | -0.19% | -0.56% | -0.31% | 0.07% | |
| AUD | 0.29% | 0.53% | 0.55% | 0.39% | 0.56% | 0.24% | 0.68% | |
| NZD | 0.06% | 0.33% | 0.33% | 0.13% | 0.31% | -0.24% | 0.40% | |
| CHF | -0.37% | -0.12% | -0.08% | -0.26% | -0.07% | -0.68% | -0.40% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
