FTSE correlation with GBP

Discussion in 'Forex' started by HBC Fund, Jan 19, 2018.

  1. HBC Fund

    HBC Fund

    Hi all,

    Has anyone noticed how recently the FTSE has been rising but so to has the GBP, now usually these to are correlated so when the GBP loses value, the FTSE rises, an example being after the Brexit vote when the GBP fell but the FTSE rose due to most of the companies listed on the FTSE making most of their profits in foreign currencies which meant a weakened pound meant profits increased for those companies.

    In recent weeks with talk now moving on with the EU over Brexit, the GBP has strengthened but the FTSE has also been rising.

    Could we be seeing the start of a Bull run on equities - a new bubble?
     
  2. truetype

    truetype

    "In recent weeks" all equities have risen dramatically, and £ has risen only marginally.
     
    HBC Fund likes this.
  3. tomorton

    tomorton

    Take care - the FTSE rarely moves for long in the opposite direction to the Dow Jones or S&P. They have had a stellar bull run, which is not over yet, but if they turn downwards start to print repeated and deep down days, it would be strange for the FTSE to be going up.
    (I still have several long trades on each of the S&P and Nasdaq100)
     
    HBC Fund likes this.