The pound is trading lower against all its major peers this morning and despite the recent inverse correlation with the UK stock market, the FTSE 100 is also in the red. The GBPUSD is currently trading at the low of 1.23 and is not far from last week’s low at the time of writing.
Retailers begin the week in the red
Shares in the retail sector are some of the worst performing so far this morning with Next sitting at the foot of the FTSE 100 and trading lower by more than 2%. Marks & Spencer, Sainsbury’s and Tesco (LON:TSCO) are also in negative territory as the sector on the whole has weighed on the broader index. The price of Gold bullion has increased in early Monday trade with Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) both benefitting from this and residing amongst the largest gainers. The last two weeks have been a torrid time for Gold bugs with the market being heavily offered since Trump’s US election victory. The 1200/oz level looks potentially pivotal from a technical perspective and with last week’s low just a few points above there, longs will hope the price respects this support as another leg lower could see a market that was one of the best performing in 2016 quickly lose it’s shine.
Oil rises on OPEC hopes
The recurring fundamental theme of late in the crude markets is becoming increasingly relevant to price action with the November 30th OPEC meeting fast approaching. The will-they-won’t-they saga relating to an agreement on output cuts within the organisation continues to twist, with the latest turn over the weekend seemingly a positive development as far as price is concerned. According to news reports over the weekend OPEC’s second-biggest producer, Iraq, will offer new proposals to help the cartel reach an agreement next Wednesday, whilst Russian President Putin has also been quoted as saying there is a high probability of a production freeze from Russia. Brent crude has rallied higher by around 1.5% so far today, and also briefly traded above last week’s high. This rise in price has seen Royal Dutch Shell (LON:RDSa) and BP (LON:BP) both gain by similar amounts since the London open.