American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

FTSE 100 index forecast as the GBP/USD exchange rate soars

by admin April 16, 2025
April 16, 2025
FTSE 100 index forecast as the GBP/USD exchange rate soars

The FTSE 100 index has bounced back recently after Donald Trump softened his stance on the tariffs and after the US reported the latest economic numbers. The index, which tracks the biggest companies in the UK, rose to £8,200 on Wednesday, up sharply from the year-to-date low of £7,545. This surge happened as the GBP/USD pair soared to its highest point in months.

UK stocks are bouncing back

The FTSE 100 index has bounced back in the past few months as investors reacted to a decision by Donald Trump to scale back his tariffs. 

His initial reciprocal tariff on the UK was relatively smaller than other countries. He set a 10% tariff, much lower than the 20% he set on the UK. 

The index has also done well because the biggest companies in the index will not be highly affected by his tariffs.

AstraZeneca, the biggest FTSE 100 stock, is a pharmaceutical company, meaning that it is a bit immune to tariffs and a recession. Historically, these companies are usually less affected by downturns because insurance companies pay for most prescription drugs. 

Shell stock price will be impacted because of the potential crude oil price crash. In a recent note, we warned that Brent and WTI benchmarks may drop to $40 in the next few months. 

HSBC, the third-biggest FTSE 100 stock has a small exposure to the US after it sold its operations there. 

Other top companies like Rio Tinto, Rolls-Royce, GSK, London Stock Exchange, National Grid, and BAE Systems will also not be affected by these tariffs. The same is true with popular stocks like Lloyds, Tesco, and NatWest. 

The British pound has surged

The FTSE 100 index has also bounced back because of the ongoing British pound surge. The GBP/USD exchange rate has surged to 1.3263, its highest point since October last year. It has jumped by almost 10% from its lowest level this year. 

The GBP/USD pair rallied after the UK published the latest inflation data. According to the Office of National Statistics (ONS), the headline consumer inflation fell from 2.8% in February to 2.6% in March. The core CPI, which excludes the volatile food and energy prices, fell from 3.5% to 3.4%.

While the decline was minimal, the fact that it dropped is a sign that analysts expect the Bank of England (BoE) to deliver another rate cut later this year. The FTSE 100 index does well when the BoE is slashing interest rates. 

FTSE 100 technical analysis

FTSE 100 index chart | Source: TradingView

The daily chart shows that the FTSE 100 index has bounced back in the past few months, moving from a low of £7,545 earlier this month. It has moved above the crucial resistance level at £8,000, its lowest level in November and December last year. 

However, the index still remains below the 50-day and 200-day Exponential Moving Averages (EMA), a sign that it is still bearish. 

Therefore, the most likely scenario is where the index drops, the support is retested at £8,000, and then the bullish trend resumes. The FTSE 100 index will likely rise and retest its highest point this year once the tariff jitters ease.

The post FTSE 100 index forecast as the GBP/USD exchange rate soars appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Asian markets open: Nikkei, Hang Seng dip amid tariff uncertainty; China economic data looms
next post
Plug Power stock price crashed from $75 to $1: what next?

Related Posts

S&P 500 index stocks to watch: Google, Tesla,...

April 20, 2025

Lancaster Resources

April 11, 2024

4 Ways to Invest in Gold for Retirement...

August 6, 2024

Appia Rare Earths and Uranium Corp. to Present...

May 19, 2024

Jeff Clark: Bottom is in for Juniors After...

February 1, 2024

SCHD ETF technical analysis: buy, sell or hold...

February 6, 2025

Dark MAGA, Trumpcoin, TRUMP tokens surge; NYT predicts...

November 6, 2024

Energy Fuels Announces Q2-2024 Results Including Uranium Mining...

August 3, 2024

COWZ ETF is beating VOO and CALF funds:...

February 12, 2025

Miners Facing Financing Frustration, Where Will the Money...

March 20, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,179)
    • Investing (2,525)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved