12 Nov 2013
Flash: GBP/USD dip fueled by M&A rumours - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that yesterday’s dip below 1.60 in GBP/USD seemed to be fuelled by rumours of a potential M&A deal with a UK company believed to be buying a US firm.
Key Quotes
“On a quiet US holiday this was enough for the market to move the pair lower. We see reasonably strong support at 1.5895, but a close below this level could signal a trend lower in GBP/USD.”
“With expectations of strong UK data this morning, the pair could be heading back up to 1.60 before this support is tested.”
“Likewise GBP could push higher across the board with a positive release this morning, so clients looking to purchase foreign currency and sell the GBP, may want to stay in touch with the dealing desk from 09:30 onwards this morning.”
Key Quotes
“On a quiet US holiday this was enough for the market to move the pair lower. We see reasonably strong support at 1.5895, but a close below this level could signal a trend lower in GBP/USD.”
“With expectations of strong UK data this morning, the pair could be heading back up to 1.60 before this support is tested.”
“Likewise GBP could push higher across the board with a positive release this morning, so clients looking to purchase foreign currency and sell the GBP, may want to stay in touch with the dealing desk from 09:30 onwards this morning.”