You are here: Home - Investing - Experienced Investor - News -

Pound jumps on possible Brexit delay

Written by:
The pound rallied against the dollar, causing the FTSE 100 to slump on Friday, as speculation emerged of a possible Brexit delay.

Sterling gained 0.7% against the dollar, reaching $1.2842 during the afternoon session after the Evening Standard put out a story claiming that Brexit was on course to be delayed.

According to the paper, a number of Cabinet and senior ministers now take the view that an extension to the timetable for the UK’s exit from the European Union is inevitable.

The rally in sterling caused the FTSE 100 to fall. This happened because the index is largely made up of companies that derive their earnings overseas and therefore benefit from a weaker pound.

At the time of writing, the FTSE 100 was down 0.4%, trading at 6,919 points, up from a low of 6,906 reached earlier in the afternoon.

It was certainly a day of two halves. During the morning, the index breached the psychological 7,000 mark, buoyed by news from the US after Federal Reserve chair Jerome Powell hinted that the central bank would take a break from further interest rate rises for the time being.

This preceded the news that UK economic growth slowed to 0.3% over the three months to November. This compares to 0.6% over the three months to September.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week