If you are looking for a great way to make money in Foreign Exchange Trading please bear with us. We are a brand new signal service, around 24 hours a day. Complete Traders

Wednesday, June 2, 2010



Hermit Dave said...

Some thinking behind GBP USD behaviour:
GBP/USD drops some 35 ticks to the day's low of 1.4597.
A couple of traders, one in London the other in New York, say the move is on talk
Prudential is not unwinding its sterling hedge despite its planned takeover of
AIG's Asian arm no longer being on.

Complete Traders said...

AsExcuse me my apparent ignorance:
AIG is a US Company and I thought Prudential as well. So what is GBP's involvement in this matter at all?

Hermit Dave said...

Sterling trimmed earlier gains on Wednesday as the one-off positive currency effects of the collapse of Prudential's attempt to buy AIG's Asian arm subsided.
The pound had risen broadly in early trade after British insurer Prudential plc said it was withdrawing from a $35.5 billion deal to buy American International Group Inc's Asian life insurance business AIA. [ID:nTOE65100R]
Traders said Prudential had put in place a series of currency hedges, selling sterling against the dollar, when the initial bid was announced in March and these positions had needed to be unwound.
"The rally of the past two sessions has been driven solely by the news that the Prudential's ambition to buy AIG's Asian arm has failed and this implied that pre-deal hedging positioning have had to be unwound on a large scale," said Audrey Childe-Freeman, senior currency strategist at Brown Brothers Harriman.