This move started in early London yesterday with a sell-off in EUR/GBP and the break below .8400 guaranteed some significant demand for the pound. The cancellation of the PRU/AIA deal may have been the catalyst and we were aware of the fact that some protective hedging options had been reduced over the last week. EUR/GBP looks like it has now broken lower and the big question is whether this manifests itself through a rise in the cable, a fall in the EUR/USD, or a bit of both.
Good luck today.
