FTSE Rises as Pound Depreciates Further

The FTSE 100 index has gone above its all-time high during a day’s trading, boosted by further falls in the pound.
The UK’s benchmark index broke through its previous record intra-day level to hit 7,129.83 before losing some ground.

Analysts said shares were lifted by a weak pound, which fell on fresh worries about how the UK’s economy will be affected by Brexit.

Sterling slipped below $1.23 and €1.11 in morning trading to its lowest value since last week’s flash crash.
The fall in the pound has boosted the FTSE 100 as many of the companies in the index generate most of their revenues abroad.

A weaker pound means overseas revenues are worth more when they are converted back into sterling.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza