• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

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

by April 16, 2025
by April 16, 2025

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 comment
0
FacebookTwitterPinterestEmail

previous post
CDC eyes narrower COVID-19 vaccine guidance ahead of 2025–2026 season
next post
Google sued for £5 billion in UK over alleged abuse of ad dominance

Related Posts

Okta stock price forecast after earnings: will the...

August 27, 2025

Morning brief: Yuan soars to strongest since Nov;...

August 27, 2025

Why are cocoa prices falling sharply as market...

August 27, 2025

Trump memecoin turns bullish as Canary Capital files...

August 27, 2025

An inflation ambush: Australia’s 2.8% price spike shatters...

August 27, 2025

China’s exports to Africa surge 25% in 2025...

August 27, 2025

Europe markets open: Stocks rebound, CAC 40 up...

August 27, 2025

Lego first-half sales hit record $5.4B on strong...

August 27, 2025

Zinc prices rally on US rate cut hopes,...

August 27, 2025

Google Cloud enters $30 trillion payments race with...

August 27, 2025

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.

Recent Posts

  • Why Enemies of Liberty Hate Economics

    August 27, 2025
  • Can Latin America’s Superwoman Save Venezuela?

    August 27, 2025
  • Blues Introduces New Fleet Management Capabilities to Simplify Large-Scale IoT Deployments

    August 27, 2025
  • The New On-Prem Pivot: Rethinking IoT Device Management in a Security-First Era

    August 27, 2025
  • Connexin LoRaWAN network connects a quarter of a million smart water meters across the UK

    August 27, 2025
  • Why Enemies of Liberty Hate Economics

    August 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,344)
  • Editor's Pick (226)
  • Investing (185)
  • Stock (1,583)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Here’s why the Bayer share price may...

August 5, 2025

6 million Qantas customers hit in one...

July 2, 2025

CoreWeave stock is firing on all cylinders:...

June 4, 2025