UK pound is pulling back today after its surging performance yesterday. News of a major energy merger helped the sterling yesterday, and today the currency is consolidating a bit as Forex traders consider the situation and focus on Fed minutes.
Yesterday, M&A interest surged as Royal Dutch Shell announced that it would merge with BG Group. The merger created a great deal of interest in the UK pound, and sterling surged against its major counterparts. The move is expected to create the largest company in the United Kingdom, as well as create the second-largest energy company after ExxonMobil. The FTSE surged higher on the news as well.
Today, things are more subdued for the UK pound. Sterling is lower against its major counterparts as Forex traders consolidate their positions and take profits. Additionally, focus is shifting away from yesterday’s merger news and moving toward the release of the Federal Reserve minutes from the latest meeting. With the focus moving back toward policy, the UK pound is at a bit of a disadvantage, especially against the US dollar.
At 11:15 GMT GBP/USD is heading lower, dropping to 1.4836 from the open at 1.4867. EUR/GBP is higher, moving up to 0.7261 from the open at 0.7251. GBP/JPY is also down, dropping to 178.0140 from the open at 178.6050.
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