Ken Odeluga, Market Analyst at City Index joins us on the US open show to discuss his view on the highly volatile GBP/JPY cross, Barclays bank share price and on the effect of weak Pound on FTSE 250 heavyweights like Tate & Lyle (LON:TATE).
Key quotes
GBP/JPY – In terms of the Delta, this has been the best one. This is highly volatile. We are coming to end of this particular phase of easy winning. Overall the trend is still in favor of Yen.
Barclays – Only positive take away from the result was the core income, which jumped 19% y/y. The top line fell y/y. The ROE fell even lower than the average for a big bank. Hourly chart shows rising trend, things generally are pointing upwards. If we can break above 50% Fibo hurdle it would add credence to rising trend line formation.
Tate and Lyle – Biggest weight on FTSE250, 60% of revenues are in sterling compared to just 20% on FTSE 100. So it better reflects UK domestic economy. FTSE 250 rallied after Brexit vote and have outperformed its peers. Pound at 1.31 is still massively higher. Tate & Lyle has got a bit of the FTSE250 character. 80% of the revenues are in US dollars.
BOE - If BOE doesn’t cut rates, then it would be a Pound recovery story.