FTSE 100 Weekly Look Ahead: Brexit to Dictate Near Term Price Action
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FTSE 100 Analysis and News
- Brexit Headline Risk Remains Elevated
- UK Macro Events in Focus: BoE’s Vlieghe (Tue), Haldane & Carney (Thu)
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)
FTSE 100 Technical Levels
Resistance 1: 7497 (38.2% Fibonacci Retracement
Resistance 2: 7535 (September 4th high)
Support 1: 7457 (200DMA)
Support 2: 7372 (50% Fibonacci Retracement)
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.