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.

Free Trading Guides
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
Wall Street
More View more
Real Time News
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: 0.64% Silver: 0.13% Oil - US Crude: -1.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ERG8JOGxZf
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: -0.23% Wall Street: -0.31% US 500: -0.36% Germany 30: -0.54% FTSE 100: -0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JEODi73ZcM
  • Finland's government states that is rejects EC proposal for recovery package as it now stands and demands change $EUR
  • GBP/USD is easing back Thursday after a week of gains as the June 30 deadline for the UK to ask for an extension of its Brexit transition period approaches. Get your $GBPUSD market update from @MartinSEssex here:https://t.co/ymQqurP9Nw https://t.co/pmPrbAgrC6
  • One for the ECB minutes to provide clarity - Lagarde says there was "broad" consensus over EUR 600bln boost in PEPP
  • In reaction to the larger than expected stimulus package, the Euro jumped to fresh highs of 1.1270 from 1.1200.Get your $EURUSD market update from @JMcQueenFX here:https://t.co/JdjmStjKwa https://t.co/aOdPDrpvNM
  • #LAGARDE sobre el tribunal de justicia alemán: El #BCE está bajo jurisdicción de la corte de justicia europea y tenemos fe en que se encuentre una solución adecuada que no hiera los intereses del BCE ni de los otros implicados $EUR
  • ECB says they have not discussed adding corporate junk bonds to PEPP $EUR
  • ECB Inflation forecasts (Baseline) - 2020 (0.3%) - 2021 (0.8%) - 2022 (1.3%)
FTSE 100 Maintains Bullish Bias Ahead of FOMC Meeting

FTSE 100 Maintains Bullish Bias Ahead of FOMC Meeting

2016-01-27 11:05:00
Alejandro Zambrano, Market Analyst

Talking Points

  • The FTSE 100 remains robust despite strong declines in the China CSI 300 index. Stronger commodities are helping it here
  • A dovish Fed may help the FTSE 100 to trade higher as it softens the Dollar and strengthens commodities
  • A break to yesterday’s high of 5944 may take price to the January 13 high of 6010

Losing Money Trading? This Might Be Why

The FTSE 100 (FXCM: UK100) remains robust despite this week’s strong declines in the China CSI 300 index, and it is potentiality trading lower in the weeks ahead, after breaking its August 2015 low earlier this week. This may haunt the FTSE 100 in the weeks ahead, but for now investors are ignoring it.

While The CSI 300 Takes value, Commodities Give

The Bloomberg Commodity Index has risen 4% over the last week and everyone’s favorite commodity to trade, Crude Oil, has risen by 15.6% over the same period. This helps the FTSE.

A linear regression using the Bloomberg Commodity Index as sole explanatory variable, shows that the FTSE 100 may still rise to compensate for the commodity gains. The current fair value estimate is 5980. In the long-term, prospects for commodities remain bearish as long as the Fed is expected to raise rates and commodity producers stick to their price wars. The FOMC is expected to be dovish today.


Overnight-index-swaps are projecting 25bps hikes over the next 12 months and the Fed would probably need to imply this is a fair estimation at today’s meeting to keep the outcome dovish. If this happens then commodities and stock markets are expected to remain supported.

Reasons to be dovish are the soft Retail Sales, Manufacturing sector, Stock Markets, and Emerging Markets, whilst strong employment data over the last few months highlights a reasonable expectation that the Fed will be hawkish.

Technical Levels

A break to yesterday’s high of 5944 may take price to the January 13 high of 6010. The next level beyond this is the January 6 high of 6158.

Yesterday’s low and last week’s low, 5768 and 5600 respectively, are acting as supports. With the overall trend being bearish, I would expect traders to use pullback to the 5750-5850 range as an opportunity to load up on long positions, with a target of 6010 and 6158 in the weeks ahead.

Learn What FXCM’s Most Successful Traders Do on a Consistent Basis, sign up for our free guide here.

FTSE 100 | FXCM: UK100

Please add a description for the image.

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

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

Struggling with Trading? Join a London Seminar

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


News & Analysis at your fingertips.