hunter wrote:What's with this pair? What's happening to GBP? Even GJ is dropping..
Found the news..
"Two factors were at play, firstly the announcement confirming Prudential had bought AIG’s Asia life insurance business (AIA) and the weekend poll indicating that we could well be headed for a hung parliament. Early trading was quite choppy, an early sell-off folllowed by rally to 1.5180/85. The die was caste though once the Pru announcement hit the wires.
So much for sleepy Mondays…
Cable is leading the currency spiral this morning as the Prudential PLC deal to buy AIG’s Asian business for $25 bln in cash and over $10 bln in stock helped tip the scales against the pound. Throw in growing fears of a hung Parliament and the growing dent problem and you have yourself a rout.
Stops have been triggered as low as 1.4784 and now the pound is on the rebound with order boards as vacant as downtown Detroit. It trades now at 1.4915. Look for sellers toward 1.5000 near-term."