UK’s mining heavy FTSE100 closed at record highs and fell just a few points short of all time intraday record highs…the reason being the sell-off in Sterling.
The sell-off witnessed this week was on fears of a ‘hard Brexit’. Though it has pushed FTSE 100 top near record highs, the speed of the drop in the currency has forced investors to question how much is too much. Note that GBP/USD pair dropped from 1.5019 (Brexit day high) to 1.2789 (post Brexit low) on Brexit vote.
In the opening segment of today’s London open show, Tip TV’s Nick Batsford and Zak Mir discuss whether the inverse correlation would continue in days ahead of the speed of the slide in the currency would cap buying interest in equities. Speculation is on the rise that the GBP/USD pair could slide to 1.15 and in response FTSE100 could jump to 7700 levels.
The panel also takes note of the drop in gold and discusses gold price chart technicals along with Oanda sentiment and most popular developments in business/finance.