As it has done for much of the week, the pound came to dominate on Friday, punishing the FTSE in the process.
Though he was hardly falling over himself with enthusiasm, the fact Monday’s official transcript of a Q&A between Michel Barnier and UK lawmakers showed the EU’s chief negotiator in a more encouraging mood than initially reported was a major boost to an incredibly receptive pound. Barnier said there were ‘lots of positive things, lots of useful things’ in the UK’s Brexit White Paper, while going on to state the EU might be prepared to simply checks at the Irish border, one of the key sticking points between both sides.
The gains made by sterling were greater against the euro, where it rose 0.6% to €1.119, than against the dollar, where it had to settle for a 0.3% increase, due to a better than forecast non-farm jobs report from the US. The headline non-farm figure came in at 201k against the 191k expected, with wage growth doubling estimates as it rose from 0.3% to 0.4% month-on-month.
In regards to the impact this had elsewhere, the euro’s decline – the single currency also dropped 0.3% against the greenback – allowed the DAX and CAC to erase their losses, while the Dow Jones dipped 60 points in the face of the broad dollar strength. That left the FTSE as easily the day’s worst performer, the UK index tumbling 50 points to a near 5 month low of 7260.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.