0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • The anti-risk Japanese #Yen may rise versus currencies like the $AUD and $NZD on US-China tensions and fiscal stimulus woes which sank the Nasdaq 100 at the end of last week. Get your #currencies update from @ddubrovskyFX here: https://t.co/Kw0fYCHEcw https://t.co/jiQBPpzat3
  • The #Dollar is down than 3% year-to-date with the index responding to trend support at multi-year lows. Here are the levels that matter on the $DXY weekly technical chart. Get your #currencies update from @MBForex here: https://t.co/MVnF5VDoeN https://t.co/TP2k8u9sXN
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/ioGWvplvt7
  • Based on how US-China tensions and fiscal talks ended this past week, is the Japanese #Yen readying to push higher ahead? Check out the latest #JPY fundamental outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2020/08/10/Yen-May-Rise-as-Nasdaq-100-Falls-on-US-China-Tensions-Fiscal-Woes.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/2Km23bVAy2
  • Tech leading the S&P 500 towards record highs, however, China risks rise. FTSE 100 hovers in a lower range. Get your #equities update from @JMcQueenFX here: https://t.co/IJAABNhxjs https://t.co/ZZ6njsuf5O
  • We are heading into the peak of summer yet there are some unexpected trends in key plays. Will complacency or fundamental instability win out? My weekend video: '#Dollar, S&P 500, #Gold - The Potential for Trend, Reversal or Congestion' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/08/Dollar-SP-500-Gold---The-Potential-for-Trend-Reversal-or-Congestion-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/7KoypvTwcL
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/40C8Sg5fM6
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:https://t.co/sR7HqpK8BI https://t.co/GZXAbZxL38
  • The Australian Dollar could be on the verge of a major breakout against the US #Dollar as $AUDUSD rates eye a close above pivotal chart resistance. Get your #currencies update from @DanielGMoss here: https://t.co/1y4serFW7h https://t.co/OtqppN7fcp
  • Multiple time frame analysis follows a top down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. Learn how to incorporate multiple time frame analysis here: https://t.co/HnzQcAXWLU https://t.co/A517hC0JAG
FTSE 100 Weekly Look Ahead: Upside Breakout Dependent on BoE & Earnings

FTSE 100 Weekly Look Ahead: Upside Breakout Dependent on BoE & Earnings

2018-07-28 11:00:00
Justin McQueen, Analyst
Share:

FTSE 100 Analysis and News

  • UK Earnings from Large Banks and Energy Names in Focus
  • Key risk event come in the form of the BoE report

Low Volatility Keeps FTSE 100 Elevated

As we enter the Summer period, volatility continues to drift lower as represent by the FTSE 100 volatility index (VFTSE) which is at the lowest level in over a month. Consequently, as volatility drops off, the FTSE 100 could see an extended move higher, indicated by the rising correlation between the two.

FTSE 100 vs. FTSE 100 Volatility Index

FTSE 100 Weekly Look Ahead: Upside Breakout Dependent on BoE & Earnings

UK Earnings in Focus

Over the course of next week, eyes will be on the large banking names in the UK with Standard Chartered (Tue), Barclays (Thu) and RBS (Fri) providing an update on their latest financial results. Questions will be asked as to whether corporate profits continue to take a hit in the low interest rate environment. In terms of share price performance, major banks have underperformed the broader by around 5-10%. However, the outlook may be somewhat lifted provided the BoE raise rates on Thursday and signal a continue tightening of monetary policy. Elsewhere, index heavyweight BP will announce their earnings on Tuesday, which has outperformed the FTSE 100 by some 8%, following the surge in oil prices to 4yr highs on the back of geopolitical tensions.

FTSE 100 Influence

Company

Sector

Index Weighting

BP

Oil and Gas

5.1%

Standard Chartered

Financials

1.1%

Barclays

Financials

1.9%

RBS

Financials

0.5%

Bank of England QIR Expected to Lead to Volatile GBP Reaction

The Bank of England are expected to raise rates next week to 0.75% from 0.50% with OIS markets pricing in an 80% probability. However, the focus will be on whether the BoE will signal another hike in the near-term. Given the recent soft data points, the Bank of England are likely to remain data dependent and reiterate that tightening monetary policy will be gradual and limited. As such, a cautious stance by the Bank of England may be enough to lead to a sell-off in the Pound, consequently prompting a bid in the FTSE 100.

See our Q3 forecasts to learn what will drive FX the through the quarter.

FTSE 100 PRICE CHART: Daily Time Frame (March-July 2018)

FTSE 100 Weekly Look Ahead: Upside Breakout Dependent on BoE & Earnings

Chart by IG

FTSE 100 remains supported above 7700, while the initial target for bulls is the weekly high at 7741 before a potential retest of the June highs at 7796. RSI indicators also suggesting bias is to the upside.

IG Client Sentiment Points to Bullish Momentum

The latest IG client positioning data shows 41.7% of traders are net-long with the ratio of traders short to long at 1.4 to 1. In fact, traders have remained net-short since Jul 16 when FTSE 100 traded near 7610.2; price has moved 0.8% higher since then. The number of traders’ net-long is 10.4% lower than yesterday and 31.9% higher from last week, while the number of traders net-short is 4.1% lower than yesterday and 23.4% lower from last week.We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests FTSE 100 prices may continue to rise.

KEY TRADING RESOURCES:

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.