Market News & Analysis
No-deal threat undermines the pound and the FTSE
Fiona Cincotta July 17, 2019 12:55 PM
Long term, the deeper problem building here is not so much will the UK leave the EU or stay, but the fact that if no-deal happens it will undermine the Irish border and the agreements the UK has in place with Ireland, which could potentially threaten the whole structure of the United Kingdom.
Pound slips to 2-year low
The pound is in trouble this morning having fallen below a 2-year low against the dollar but the decline is helping some FTSE majors such as luxury brand Burberry and Rolls Royce.
The positive currency effect was not enough to hold the FTSE, which is now trading lower, dragged down by miners and supermarkets. Oil majors are also declining as oil prices – which are marginally higher this morning – took some losses over the last few days.
Sterling briefly fell below $1.24 and below EUR1.107 but then evened out to trade flat against the dollar and the euro. The next point of focus will be UK inflation data this morning which, if it falls short of expectations, could push the currency even lower.
Please note these products may not be available to trade in all regions.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.