FTSE 100 Weekly Look Ahead: Brexit to Dictate Near Term Price Action

2018-09-24 08:00:00

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FTSE 100 Technical Levels
KEY TRADING RESOURCES:

FTSE 100 Analysis and News

Brexit Headline Risk Remains Elevated
UK Macro Events in Focus: BoE’s Vlieghe (Tue), Haldane & Carney (Thu)

	Price	50DMA	100DMA	200DMA	RSI	IG Sentiment
Europe
FTSE 100	7470	7516	7586	7457	55	Mixed
DAX	12370	12360	12492	12487	57	Bullish
CAC 40	5483	5409	5408	5370	64	Bullish

US
S&P 500	2921	2871	2819	2756	60	Bullish
DJIA	26771	25832	25332	24966	73	Mixed
Nasdaq 100	7487	7465	7340	7053	48	-

As Brexit optimism faded last week following a rather unsuccessful Salzburg meeting between the EU and UK. The FTSE 100 saw its largest weekly gain since February, rising over 2.5% as the Pound plunged 1.7% at the back end of the week, while fresh record highs on Wall Street also supported the FTSE. However, given the size of the fall in the Pound, it is possible that a slight reprieve will be seen, consequently leading to a pullback in the FTSE 100. While sentiment may also take a dip after the US imposed $200bln worth of tariffs on Chinese goods, which led to China rejecting the latest offer for trade talks from the US. Headline risk surrounding Brexit continues to remain elevated, as such, short term price action in the FTSE 100 may continue to be dictated by the latest Brexit developments ahead of the Conservative party conference.

Source: Thomson Reuters

UK Weekly Focus

Few economic data points to drive significant price action this week, with UK GDP final readings the main report. Eyes will be on BoE rate setters with Vlieghe (Tue), Haldane & Carney (Thu) all due to speak this week. Volatility in UK assets will likely remain influenced by Brexit.

FTSE 100 Price Chart: Daily Time Frame (February-September 2018)