GBP: Political reshuffle won't distract attention from Gilts – ING

Pound Sterling (GBP) is holding steady, ING's FX analyst Chris Turner notes.

Gilts remain the weak link for GBP

"The enforced cabinet reshuffle by UK Prime Minister Keir Starmer on Friday did not touch Chancellor Rachel Reeves, who is valued for her market credibility. Softer US data has seen last week's global bond market sell-off abate - yet Gilts remain the weak link for sterling."

"There's no UK data of note this week and few Bank of England speakers. We suspect EUR/GBP can trade in a 0.8650-0.8700 range this week, given that next week's BoE meeting and news on quantitative tightening plans will be far more interesting."