Politics, more politics and then some technical buying have helped the pound hit the highest level in seven months against both the dollar and the euro.
The dollar has been under pressure for several days now as the China US trade deal seemed to be slipping through their collective fingers, the notion confirmed yesterday after President Trump said that a deal may not happen until after the US elections in November 2020.
During the same period the pound has been strengthening based on polls showing a likely Conservative win in UK elections later this month and finally after the markets opened in London sterling broke above the key $1.3 level. This spurred some technical buying this morning which was only capped after the release of the UK services PMI data showing that the sector has stopped growing for the last three months.
FTSE moves higher as China talks hang in the balance
Financial services firms traded higher bolstered by a stronger sterling while mining and metal groups also gained ground despite the latest crisis with US-China trade talks.
Vodafone’s big news about cooperating with Amazon (NASDAQ:AMZN) Web Services on computer and storage services on its network fell on deaf ears with investors and the stock declined 0.94%. This is in sharp contrast with French network operator Orange which rolled out its new five-year strategy which included higher earnings targets and potential plans for mobile tower operations.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.
Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.