We have had a week full of negative news that has forced the FTSE100 index (Ticker AT: UK100) to cut its price from Monday to the Asian open by -3.70% and now at the European open it has rebounded by 1.36%. A possible military escalation between Iran and Israel has put the spotlight on the alert warnings in all markets and the Asian market experienced with a downbeat sentiment a possible affection for the technology and commodity market, on which the London index is so dependent. Gold prices fell by 3% in Asia-Pacific trading today and it is clear that commodities are having, never better said, "their golden moment" with so much military drama around the Middle East and Eastern Europe.
The British index has a high bearish sentiment on a technical level among investors after the early morning. Today the UK government will issue retail sales and fuel sales releases with Bank of England (BoE) Governor Dave Ramsden's speech at midday. Currently the Bank Rate is at 5.25% and the inflation rate is at 3.2% aiming for the 2% target. It is very likely that the central bank will keep its rate as it is given that the inflation cut target seems to be working well and the change of governor will not take place until July 1st, so a continuation of policy is likely.
The corporate data facilitated the upward adjustment during yesterday's session and it is possible that it will try to recover that zone again today and next week looking for the most traded zone of the bell which is at 7,953.35 points, currently the price is at 7,831.70 points so there is still a range to recover the middle zone of last week. Its RSI is oversold at 45.20% so it would not be unusual to see another bullish attempt as we say today and during the next week.
Ion Jauregui - AT Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The British index has a high bearish sentiment on a technical level among investors after the early morning. Today the UK government will issue retail sales and fuel sales releases with Bank of England (BoE) Governor Dave Ramsden's speech at midday. Currently the Bank Rate is at 5.25% and the inflation rate is at 3.2% aiming for the 2% target. It is very likely that the central bank will keep its rate as it is given that the inflation cut target seems to be working well and the change of governor will not take place until July 1st, so a continuation of policy is likely.
The corporate data facilitated the upward adjustment during yesterday's session and it is possible that it will try to recover that zone again today and next week looking for the most traded zone of the bell which is at 7,953.35 points, currently the price is at 7,831.70 points so there is still a range to recover the middle zone of last week. Its RSI is oversold at 45.20% so it would not be unusual to see another bullish attempt as we say today and during the next week.
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.