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FTSE 100 still feeding off a lower GBP/USD and higher oil

In noting the moves in the pound and the oil price over the past few sessions, it is pretty obvious to see how that has positively impacted the FTSE 100. Let me clarify why that is for new readers, or those that need reminding. A large number of FTSE 100 component companies receive a lot of their earnings in dollars. So, when the GBP/USD falls that makes those companies more profitable, assuming they are un-hedged of course in that regard. Even if they are not, the market perception of that positivity for those stocks remains in place. The second driver for FTSE 100 gains comes when Oil prices rise, owing to the significant number of oil based companies within the index. So, the FTSE 100 rose to a fresh interim high on Friday at 7,745, following the noted technical breakout above 7,750 the day before. It later closed at 7,711. Oil prices have reached new 2023 highs this morning and the GBP/USD is below 1.24 as I write. The index has traded to as high as 7,714 so far. It is just now at 7,710 
 

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