Plunging Pound Is Fueling FTSE 100’s Outperformance

·1 min read

(Bloomberg) -- The plunging pound is pointing to further outperformance for the exporter-heavy FTSE 100 index relative to the more domestically-focused FTSE 250. The British currency is at its lowest level against the dollar since 1985, as the economic outlook continues to darken and as traders weigh the Bank of England’s hawkish policy and government stimulus measures. “The policy response should limit economic damage, while putting upward pressure on yields and downward pressure on the pound,” said Citigroup Inc. strategists led by Beata Manthey, forecasting that the FTSE 100 outperformance will continue.

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