After a month of tense negotiations, Anheuser-Busch InBev has reached a deal to buy SABMiller. The deal has ballooned to $68 billion, which is set to flow to Britain.
GBP/USD is reacting with a rise to 1.5387, still hesitating before the round 1.54 level ahead of the UK inflation figures.
Anheuser-Busch InBev commands a quarter of the world beer market and together they will have a third of this liquid market. While the deal needs to undergo various approval levels, the markets see it as a done deal.
Mergers and Acquisitions usually play second fiddle to outright speculation regarding changes in interest rates, but a deal of such magnitude really raises the bar.
The pound may certainly sober up if inflation, expected to remain at 0% y/y on headline CPI, would fall to negative ground once again. Eventually, shifting expectations regarding monetary policy have the upper hand.
And tomorrow we might get a positive figure regarding the British economy, something to raise a toast to: a raise. Salaries have been advancing at a nice clip of 2.9% month over month in July, and we will see if the trend continued in August.
See how to trade UK wages with GBPUSD
