Sterling levelled up against the euro this Thursday, while the FTSE was rescued by an oil-sector reversal.
The pound is continuing to dine out on the signs of Brexit progress, with yesterday’s reports of a divorce bill agreement joined by a rumours that the UK and EU are ‘close to a breakthrough’ on the Irish border issue. Combine that with the euro’s disappointment at the latest Eurozone-wide inflation reading – which came in at 1.5% against the 1.6% forecast – and sterling gained more ground on its rival, at one point tickling €1.14. Cable, meanwhile, maintained a steady 0.2% rise, keeping it around the $1.345 mark.
This kind of growth had been a massive weight around the FTSE neck at the start of the session. However, the fact that BP (LON:BP) and Shell (LON:RDSa) have largely erased their initial losses – thanks to the Saudi oil minister claiming OPEC is in ‘perfect alignment’ over the current output agreement – has allowed the FTSE to claw its way back above 7400 with a 0.2% rise.
As for this afternoon, Wall Street traders might want to get the champers ready, for the Dow Jones is all set to open above 24000 for the first time in its history. If it does, that’d mean the Dow has climbed around 500 points since the start of trading on Tuesday, a remarkable rise fuelled by the progress of the Republican tax bill.
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. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.