Currency Note Sterling

Sterling benefits from failed takeover bid

By Ricky Bean October 8th, 2015

A positive day for sterling saw it move higher against both the euro and US dollar. Poor economic data for Germany and Belgium-based AB InBev launching a fresh bid to purchase SABMiller, the UK’s largest drinks manufacturer (a corporate takeover of this size will require AB InBev to purchase a significant amount of sterling to complete the deal) were the catalysts for sterling strengthening. This was even despite the latest bid being rejected, and recent disappointing data from the UK, and allowed sterling to move away from five-month lows versus the euro and US dollar.

All eyes today will be focused on the release of minutes from the Bank of England (BoE)’s latest monetary policy committee (MPC) meeting. With the committee last time split 8-1 in favour of keeping rates on hold, investors will be eagerly awaiting news of whether there has been any change in the voting pattern. BoE Governor Mark Carney will also speak in the evening and could elaborate on comments found in the meeting minutes.