GBP/USD waiting on Burnham pick for Chancellor

Earlier this morning we noted how the GBP/USD had stalled on the topside during the Asian session, at 1.3481. Well, since then it pushed back close to that earlier high, reaching 1.3478. However, that was before the news out of Yemen we covered in the previous update, sent it lower again. 

The Pound has just now dipped below 1.3450. The rebound in the dollar is entirely responsible for that relapse, but the markets are eager to see who will be appointed as the new Chancellor of the Exchequer. This will be by far the most important appointment of the new cabinet.

There are a number of potential candidates and some that may not have been suggested by the press in recent days. So, we shall have to see how this turns out. The appointment is said to be due sometime after 1pm GMT this afternoon, but that is not to be taken as read. The Pound could react to anything that is seen as too far from left of centre for this appointment. The EUR/GBP could figure in all that too. The GBP/USD is right now at 1.3454