Though Theresa May’s pair of speeches last week has helped sterling by somewhat clarifying Britain’s Brexit position, given that the currency is only up 0.2% against the euro it seems that Monday’s cable gains are more a case of dollar weakness than pound strength. The greenback, which also shed 0.4% against the euro and 0.8% against the Japanese yen, seems to have been shaken both by the apocalyptic tone set by Trump at his inauguration, and the global protests that greeted the former Apprentice host’s ascension to the highest office in the land.
The European indices weren’t too pleased with this situation; the CAC fell by 0.3%, while the DAX and FTSE both dropped by 0.8%. Alongside the pound’s growth, sharp losses from BP and Shell and a splash of red across the banking sector are dragging on the FTSE, which is now at its worst price since the first trading day of 2017. To make matters worse Monday’s economic calendar is pretty threadbare, leaving little to change the UK index’s situation as the morning progresses.