LONDON: Yet another spike for the FTSE 100 has carried the market to all-time highs, while the US dollar is recovering ahead of the jobs report next week. It’s been nearly two weeks since the last all-time high on the FTSE 100, so we were due another one, and the index duly delivered, leaping to 7550. The index is almost entirely alone in this, although the FTSE 250 has happily held on the 20,000 level, an area that it has attained after an elegant rally that has essentially moved in a straight line since early December.
The precipitate fall in the pound is undoubtedly helping, with the currency taking a rather dramatic tumble below $1.28 as the script for the general election is torn up. Speaking of currencies, the euro is beginning to look quite toppy against the US dollar, with sellers evidently keen to push the price to its lowest level in several days. This could provide the breathing space eurozone stock markets have been praying for, having been left behind by the US and UK markets. With holidays in the US and UK on Monday we are in for a quiet start to the new week, although the upcoming US jobs report should focus attention very quickly, not least because it forms a prelude to the key Fed meeting that follows in mid-June. Dollar bulls appear to be gathering already, sensing that the market has got too bearish on the outlook for the US economy, with the greenback now due a rebound.
