Cable holding steady in latest US dollar climb.
The US dollar is getting a lift as stocks give up gains and oil prices slide. Dudley also kept a June hike on the table, albeit with some important caveats about growth, jobs and inflation picking up that are probably unrealistic.
The pound is strong across the board after UK-incorporated Shell announced a $70 billion deal to buy UK based BG Group. That's a not an FX transaction but is still underpinning the more than 100 pip rally in cable today.
That said, the US dollar is gathering some significant strength at the moment and the earlier low of 1.4919 is under pressure.
GBPUSD intraday
A better spot to buy the pound at the moment might be against the euro. Tomorrow is deadline day for Greece to pay the IMF $425 million and it doesn't look like it's coming. There's a one month grace period so it's not a firm deadline but it will put the focus back on that basketcase.
Technically, EUR/GBP is nearing the March 31 low and a break could clear the way for a fresh fall to 0.7000.
EURGBP daily
