The pound was up 0.5% versus the US dollar to 1.280 US dollars.
London’s blue-chip share index was higher this morning despite deepening uncertainty about the Brexit process. But sterling was down, as were domestic UK stocks, suggesting the drawn-out UK departure is taking its toll on financial markets.
The FTSE 100 closed 1.2% higher
Traders who thrive on stress and anxiety are in for a treat during the next 12 months as Britain’s tortuous departure from the European Union promises endless market turbulence. No-one can see the future, but there are some principles that ought to help traders navigate the choppy waters ahead.
The OECD said a no-deal Brexit scenario could wipe off more than 2% from UK growth over two years.
A strengthening dollar is good news for US motorists but could make oil more expensive for other countries. The pricing of oil in dollars is once again in the spotlight as the rest of the world will need to spend more local currency to pay for their crude.
Rock-bottom interest rates and US-China trade tensions have put the skids under the Australian dollar recently. A strong jobs outlook and more upbeat mood seemed to have stopped the rot, but poor housebuilding figures helped stall the rally.
Financial markets don’t move in one direction forever – they move up and down based upon significant news and events. Traders who just let their profits run can ultimately incur significant losses. To prevent them, it’s vital to exit trades at the right time.
Investing sounds solid and respectable, while trading sounds too much like speculation to a lot of people. But it can be argued that trading is better suited to an unpredictable world than investing, which assumes a long-term stability that cannot be relied upon.