Pound Strengthens FTSE Falls

The pound strengthened today and by midday was up 0.3% at $1.2899 against the dollar, the highest since November. Just before the Brexit vote.

This comes a day after Theresa May requests MP’s to re-consider her Brexit compromise plan with Brussels.

She warns anyone who favours Brexit that if they don’t reconsider there is a possibility of a standstill in parliament and Brexit not going ahead.

So why did the £ rise despite Brexit worries normally weakening the £?

Quite simply, the Dollar ($) weakened on economic slowdown on both China and the US.  Meaning that 70% of FTSE 100 companies that earn the majority of their profits overseas, will be converting those weakened dollar profits into a stronger pound.