Pound’s Pain Is Stocks’ Gain

BOE sends sterling and FTSE 100 to a record negative correlation

The inverse relationship between the exporter-heavy FTSE 100 Index and the pound has never been stronger. The 40-day correlation between the two reached its most negative ever on Thursday, after the Bank of England raised rates but said another increase isn’t imminent. The relationship, which gave the FTSE 100 a big boost after 2016’s Brexit vote-induced currency plunge, has propeled the gauge higher in recent weeks amid sterling weakness.

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