The pound seemed pretty impervious this Thursday, its lack of movement likely more due to exhaustion and uncertainty then resilience.
Despite the, admittedly well-trailed, disappointment of Wednesday’s EU summit, and a far lower than forecast UK retail sales reading from September (at -0.8% it was the worst figure in 6 months), sterling barely budged as the day went on. Part of that is because, against the dollar at least, it suffered a notable fall yesterday; yet cable still has plenty of reason to move lower, making its flatness all the more notable.
As for the FTSE, the Brent Crude and copper-led losses in the commodity sector – informed by the growing fears surrounding the Chinese economy – meant the UK index couldn’t do much on Thursday. Though, to be fair, neither could its peers; while the FTSE added just 0.1%, the DAX and CAC were only up 0.2% and 0.3% respectively themselves.
Turning to this afternoon and it looks unlikely that the US open is going to bring about a shift in sentiment. The Dow Jones is facing a 30 point dip after the bell, one that would cause the US index to drift back under 25700.
"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."