British Pound (GBP) Latest: Sterling and FTSE Weakness Set to Persist
GBP and FTSE prices, news and analysis:
- EUR/GBP continues to firm while GBP/USD, the FTSE 100 and UK Government bonds (Gilts) are weaker again and could well extend their losses.
- A £350 billion package of measures to boost the UK economy has so far failed to temper concerns about the impact of the Covid-19 virus on demand.
GBP/USD, FTSE 100 slide, further losses in prospect
The recent slide in UK assets, including stocks, Government bonds and the British Pound, looks set to continue despite the announcement by UK Chancellor of the Exchequer Rishi Sunak of a £350 billion package of measures to offset the impact of the coronavirus pandemic on the UK economy.
Sunak’s measures include £330 billion in loans, £20 billion in other aid, a business rates holiday and grants for retailers and pubs. Help for airlines is also being considered. Nonetheless, there have so far been few signs of an about-turn for the FTSE 100 index of the leading London-listed stocks, GBP/USD or the Sterling crosses.
GBP/USD Price Chart, Two-Hour Timeframe (March 9-18, 2020)
Chart by IG (You can click on it for a larger image)
Selling of both stocks and Government bonds by investors moving to the safety of cash caused the FTSE 100 to drop by around 3.5% and the yield on the 10-year Gilt yield to advance to 0.73% in early London trading Wednesday.
We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
--- Written by Martin Essex, Analyst and Editor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.