FTSE100 futures rise as GBP crumbles, Will the GBP-led rally last?

Sterling’s 6% sell-off in Asia is boding well for the FTSE100 futures, which are up almost 0.40%.

The inverse relationship has been in place even since Britons voted in favor of Brexit. Moreover, more than 60% companies in FTSE100 have dollar denominated earnings. However, the question now being asked is whether FTSE would extend the rally on weak Sterling.

Note that French President Hollande has called for ‘Hard Brexit’. German Chancellor Angela Merkel too has asked European business on Wednesday not to press for “comfortable” deals in the Brexit negotiations.

All of this could have a negative impact on FTSE100. Furthermore, equity markets could get jittery due to the speed of the decline in the exchange rate as well.

As of now, the futures are trading higher, but it remains to be seen if the positive action persists till European open.