The behaviour of London financial markets is paralleling that of those in Tokyo, The Financial Times Advisor reported on 1 August.
Since the UK’s vote to leave the European Union on 23 June, the country’s overseas earners have flourished on the expectation that their revenues would be boosted by the fall of the pound. The correlation between the weaker UK currency relative to the US dollar and a stronger FTSE is nearly at a five-year high.
The situation is similar to that of Japan, where the Nikkei has an inverse relationship to the strength of the yen.