FX.co ★ Sterling Steady as Burnham Names Healey Chancellor

Sterling is holding above $1.34, steady from the previous session, after UK Prime Minister Andy Burnham unexpectedly appointed former defence secretary John Healey as chancellor. Healey, a surprise pick who had not been seen as a frontrunner, is being interpreted by some as a signal that defence spending may rise. On policy, Burnham has so far pledged to cut taxes on energy bills, funded by scrapping the Digital ID programme.

Meanwhile, ONS data showed UK government borrowing fell to £16 billion in June, around one-third lower than a year earlier and below market expectations. Wage growth eased to 4.3% in the three months to May, slightly under forecasts, while the unemployment rate remained at 4.9%. Investors are also monitoring developments in the Middle East, amid renewed optimism over US-Iran diplomacy following recent regional escalations.