The index is trading moderately lower on the day around 7020 levels…This is despite the 100-pip drop in Sterling. The currency currently trades around 1.2630.
The lackluster reaction in the FTSE100 index forces us to consider whether the equity markets are no longer comfortable with sliding currency.
Moreover, what this means is the index may suffer sharp correction, since it is not responding to sliding currency as it did while the index is anyways vulnerable to correction in Pound.
A drop below 7K figure could yield a quick fire drop to 6940 levels.