GBP, FTSE 100 prices, news and analysis:
- Fitch’s downgrade Friday of the UK’s sovereign debt rating to AA- from AA continues to weigh on UK asset prices.
- While the FTSE 100 index of leading London-listed stocks has steadied, GBP/USD remains under downward pressure.
GBP/USD trending lower
GBP/USD is continuing to ease back Tuesday in the wake of Fitch’s downgrade of the UK’s sovereign debt rating Friday but London’s FTSE 100 index is firmer and EUR/GBP is steady.
China’s better-than-expected manufacturing purchasing managers’ index for March, released Tuesday, came in higher than expected, helping riskier assets like stocks, and the overnight release of a higher-than-expected GfK consumer confidence indicator for the UK in March has also helped boost sentiment. However, GBP/USD is still looking weaker.
GBP/USD Price Chart, 30-Minute Timeframe (March 27-31, 2020)
Chart by IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | -5% | 0% | -3% |
| Weekly | -7% | -9% | -8% |
By contrast, the FTSE 100 index is firmer Tuesday as stocks benefit from the continuing signs that central banks are ploughing money into the global economy to counter the impact of the coronavirus pandemic.
FTSE 100 Price Chart, 30-Minute Timeframe (March 27-31, 2020)
Chart by IG (You can click on it for a larger image)
As for EUR/GBP, that has stabilized although the Euro looks to be marginally firmer against Sterling.
Euro Forecast: More Gains on Way for EUR/USD, EUR/JPY, EUR/CHF?
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
Feel free to contact me via the comments section below
