FTSE 100 rescued by sterling weakness

Chris Beauchamp IG

The pound's fall against the dollar saved the FTSE 100 from falling into the red, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Sterling weakness helps FTSE 100

A disappointing morning for the FTSE 100 was rescued later in the session, as sterling took another lurch lower against the dollar to its lowest level since April. This combined with renewed strength for gold, which shrugged off the dollar’s revival to push back above $4000. So far this FTSE 100 rally appears impervious to any selling. Whether that survives more tech earnings tonight is another matter.

Gold recovers $4000

It continues to look like gold has found a low for the time being. The drop from the highs of the month was bound to happen at some point, and while the mood around gold hasn’t turned into full blown panic, it looks like sentiment is nowhere near as enthusiastic as it was three weeks ago. Signs of central bank buying continue to be seen, providing fundamental support for this battered momentum trade.

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Chris Beauchamp

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