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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Real Time News
  • The Nasdaq 100 and Russell 2000 find themselves with significantly different technical formations but traders may find cause for optimism in both indices. Get your weekly equities technical forecast from @PeterHanksFX here: https://t.co/22fvav620W https://t.co/ajXEhMQhUp
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/wRwHXFbbBW
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/ZWwGB8J6I7
  • Ethereum is starting to outperform Bitcoin again ahead of ETH’s latest upgrade, while Binance continues to pare back business areas amid ongoing regulatory pressure. Get your crypto forecast from @nickcawley1 here: https://t.co/ul4TIfI9bv https://t.co/Ht5Mr0uu91
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/m06h4hjwVP
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/LcfxFxFrTY
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/UgYlEILK5n
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/BXp2z6E0Kl
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/xGuTYZqYwh
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/EvRHfRQLgk
The FTSE 100 at Risk of Trading Lower on Soft Commodities

The FTSE 100 at Risk of Trading Lower on Soft Commodities

Alejandro Zambrano, Market Analyst

The FTSE 100 at Risk of Trading Lower on Soft Commodities

The FTSE 100 was not able to muster any major gains following Friday’s U.S. NFP result. The NFP print of 271k vs. the economist consensus of 185k, shows that the U.S. economy is doing far better than was expected.

The primary reason for the FTSE 100 underperforming was the steep decline in the basic materials sector, down by 1.82% on the day and the 2.23% decline in the utilities sector.

These declines are not surprising given the steep declines in world commodities following the U.S. Dollar breaching its 7 month range on NFP Friday. The Bloomberg Commodity index declined below its September low and is now challenging its August lows. We think it is fair to expect the USD to gain further and for commodities to drift lower in the weeks ahead, as the Fed are expected to raise rates. This should keep the FTSE 100 range bound or potentially tip it below 6300 making the very short-term trend bearish and prone to a bigger decline, in case we break 6255.

Sluggish Times To Remain in Place

There are no major market moving events in today’s session and the market FTSE index may remain range bound within the 6255-6487 range, with a breach to the upper limit probably triggering a rally towards the psychological level of 6600, and 6750 in case of an extension. If we breach the lower end of the 6255-6487 range, we may reach a 6100 level, (61.88% correction of 5875-6487 rally).

The FTSE 100 at Risk of Trading Lower on Soft Commodities

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

--- Written by Alejandro Zambrano, Market Analyst

Alejandro Zambrano, azambrano@dailyfx.com | Twitter: @AlexFX00

Learn more about trading, join a London Seminar

To be added to Alejandro’s e-mail distribution list, please fill out this form

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

DISCLOSURES