(Fixes typo in bullet 3)

• GBP$ surged higher, up 1.23% at 1.3550 in NorAm afternoon; Wednesday range 1.3552-1.3382

• US PPI confirmed current dip in inflation, which has weighed on UST yields & Fed policy tack

• Report Burnham selecting fiscally conservative Hm Sec Shabana Mahmood as FinMin aided rise

• Market had been wary Burnham would select Ed Miliband seen more fiscally expansive as FinMin

• Sterling considerable spec short vs USD likely unwinding as catalyst for move higher

• GBP$ res 1.3552 Wed high, 1.3600 psychological lvl, 1.3658 daily high May 1

• Supt 1.3500 big-figure support, 1.3437 daily cloud top, 1.3381 Wednesday low

Chart:


(Paul.Spirgel is a Reuters market analyst. The views expressed are his own)