British Pound Rallies On Failed Deal

The British Pound (GBP) rallied today against the US Dollar (USD) and other major currencies on the talks that Prudential’s PRU takeover of AIA will most definitely fail and the official announcement is expected anytime now. It is believed that takeover deal will fail after AIG AIG rejected downwardly revised bid by Prudential. The GBP/USD pair soared from below 1.4450 to 1.4625, a level last tested on May 14, and a further upside looks more likely at the moment. The British currency is trading significantly higher against the Japanese Yen (JPY) and the Euro (EUR) as well. The GBP/JPY pair climbed from 130.90s to 132.90, while the EUR/GBP is trading at 0.8330, the lowest level since November 08.