GUBRATS wrote:
So today the pound is down , but the ftse's are up , anybody want to explain to us mere mortals if that's good , bad or just normal ?
The pound is down for 2 reasons. Firstly the BofE said that because the economy was now looking grim post-Brexit, they'd probably lower interest rates in the short-term. The value of a currency is directly related to domestic interest rates, so the pound fell. Also, he apparently hinted at further QE. That's not as straightforward as printing money, but there's a basic element of truth to that. Again, increase the supply of money, and the currency generally falls. You can see how closely the drop off a cliff today coincided with Carney's speech.
As for the FTSE, as per yesterday's posts, it's short-term volatility driven by nothing more than duelling algos.