LONDON, Nov 13 Reuters Sterling edged higher on Monday after British Prime Minister Rishi Sunak reshuffled his cabinet, appointing former PM David Cameron as foreign minister and firing interior minister Suella Braverman.

The reaction in the financial markets was modest and analysts said the direction for sterling in the nearterm would be driven by economic data and the outlook for the U.S. dollar, rather than British politics.

Sterling was last trading at 1.2248 , 0.2 higher on the day. Against the euro, the pound stood at 87.28 pence also up 0.2.

Benchmark 10year UK gilt yields were down 3 basis points at 4.31, off a session peak of 4.363, while the FTSE 100 rose 0.6 to trade near the day39;s high.

Cabinet reshuffles are a domestic political issue, Geoff Yu, senior macro strategist at BNY Mellon, said.

Any shift in the finance ministry is unlikely, so for sterling, the outlook is really about the dollar.

A more immediate risk for investors in UK assets will be Wednesday39;s consumer price index CPI for October, which economists polled by Reuters expect to have risen by 4.8 year on year, after September39;s 6.7 increase.

A reading of 4.8 would be the smallest for two years, as the cost of essentials such as energy and food has increased at a far slower pace, or even fallen, in recent months.

Next week also brings the autumn budget of finance minister Jeremy Hunt, who kept his job in Sunak39;s reshuffle.

Hunt said on Friday the autumn statement, due on Nov….