Sterling dips against the dollar as FTSE nears 7,500 again

Caitlin Morrison
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Sterling Rates To Fluctuate During Brexit Negotiations
The pound is below $1.30 again (Source: Getty)

Weaker sterling and strengthening oil prices are helping to push the FTSE 100 closer to 7,500 this morning.

At pixel time, the index was up 21.6 points at 7,492.

Shares in miners Anglo American, Randgold Resources and Fresnillo are up this morning, aided by increasing oil prices - Brent crude is close to $54 and West Texas Intermediate started the week one per cent higher. Oil prices have been rising recently off the back of renewed confidence that Opec and Russia will agree to extend production cuts.

Meanwhile, the pound tumbled by 0.5 per cent against the dollar this morning, to a low of $1.2969 earlier today, having inched past $1.30 for the first time since September 2016 last week.

"Some traders are willing to build tactical short positions on the pound before June 8 general election," said Ipek Ozkardeskaya, senior market analyst at London Capital Group.

Connor Campbell at Spreadex noted that sterling was down just 0.1 per cent against the euro. "The difference in the pound’s performance against the two currencies is illustrative, suggesting that, despite the snap election boost, its recent gains against the greenback are more a case of Trump-inspired weakness than sterling-strength," Campbell commented.

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