GBP: Ongoing impact of cancelled Pfizer/Astra deal

As usual in the FX market, there are plenty of unknowns. Did Pfizer buy a large amount of GBP as a hedge whilst it was offering to buy AstraZeneca. Now that the deal has been cancelled, does Pfizer need to unwind this hedge?

Market sources are not reporting any such selling as yet anyway. I think some of the more well-connected speculators are setting themselves up with short positions in the hope/expectation that some big GBP sales are in the offing.

Add in to the mix that the market is very long of GBP across the board and you can get a sense of the potential which the GBP bear speculators are chasing.

I’d look to play a 1.6665/1.6765 range in the short-term and stay on your toes, there could be some sharp moves about to happen (although not during the Asian session).