A Rally in the Pound Has Not Stopped the FTSE 100 From Closing Higher

On Friday, the blue-chip index of London closed higher despite a rally in the pound.

The FTSE 100 index closed at 7,660.92 points which were 0.6 percent higher.

Meanwhile, the pound, which achieved post-Brexit record highs this week, experienced an extra boost against the US dollar after figures of the UK GDP came in above the expectations.

According to figures that were released by the Office for National Statistics (ONS), the economy of the United Kingdom grew by 0.5 percent during the fourth quarter, beating the expectations of economists.

Earlier last Friday, the value of sterling increased to as high as $1.4285 against the weakening dollar. At around 5 pm on Friday, the value of the pound was up by 0.15 percent to $1.4163.

The market analyst at CMC Markets, David Madden, stated: “The downward trend in the US dollar is showing no signs of letting up, and the pound is being propped up by it.

“Sterling has slipped since the morning, but the upward trend is still in place so we could see new buyers enter the market.”

Madden said that the rally across stocks in Europe felt “lacklustre.”

“Even though equities are in positive territory the level of enthusiasm isn’t anything special.”

Madden said that shares in the London Stock Exchange were up due to an upgrade by Berenberg on Thursday.

“The investment bank has a price target of 4,690p for the stock. There is room for consolidation in the financial markets exchange business, according to Sir Chris Hohn. The stock is near its all-time high.”

Fresnillo and Miners Randgold Resources were affected by profit-taking as traders cashed in on a positive run.