Having fallen after the bell, before recovering around lunchtime, the pound landed somewhere in the middle as Thursday went on.
Sterling fared better against the euro than the dollar – though this does admittedly mean little given how punishing August has been so far, with any Brits abroad feeling the pinch following the pound’s pummelling. While the currency managed to lift above €1.11 against the dollar thanks to a 0.2% rise, cable ended up slipping back under $1.29 to lurk at a near one year low.
As for the FTSE, it couldn’t shake the day’s losses, the brunt of which came from a few key stocks going ex-dividend. Over in the Eurozone this were mixed, with a 0.3% jump from the DAX joined by a 0.1% dip from the CAC, one that took the French index under 5500. The Dow Jones, meanwhile, did nothing after the bell, opening flat at 25575.
All in all it has been a quiet session, with much of the focus being on the pound despite the currency not actually moving that much. Things might be different on Friday, however, as investors process a pair of UK GDP readings – the monthly number is expected to fall from 0.3% to 0.2%, but with the preliminary Q2 figure set to double Q1’s growth at 0.4% – and July’s US inflation data, which is especially important ahead of September’s potential Fed rate hike.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.