FTSE 100: Indifferent by Chinese GDP at Slowest Pace Since 2009
- The FTSE 100 trades sideways in the very short-term.
- The FTSE 100 uptrend remains intact, but the price is trading circa 85 points away from the nearest resistance level and circa 190 points away from the closest support level.
- Chinese 1Q GDP increased by 6.7% YoY and in line with expectation.
- U.K. Construction Output, U.S. Industrial Production and U. of Michigan Confidence are all on deck.
The FTSE 100 was little changed and had kept most of this week’s gains at the time of writing.
Stock markets in the U.S. and Japan, which were closed at the time of writing, were little changed in their session and therefore have provided little reason for the FTSE 100 traders to have a strong bias.
We note that the FTSE 100 uptrend remains intact, as the price has been creating higher swing lows over the last few days, with the most recent one being the April 12 low of 6162, and the one preceding to the April 12 low, namely the April 7 low of 6106.
The nearest resistance level is the December 2 high of 6447.
The price was trading circa 90 points away from the nearest resistance level and circa 195 points away from the nearest support level. This has left the risk/reward ratio not in favour of new bullish traders, despite the uptrend in the FTSE 100.
China GDP for the first quarter of 2016 came in at 6.7%, in line with market consensus, and the slowest pace since the global financial crisis. On the other hand, CNY Industrial Production YTD (YoY) increased by 5.8%, from 5.4% and thereby beat the 5.5% expected. The markets appear to focus on the GDP outcome, which meets expectations and are therefore little changed.
This morning, U.K. Construction Output is on deck, but it is a report, which does not tend to move the FTSE 100. Instead, U.S. Industrial Production and U. of Michigan Confidence may grab the limelight given that circa 19% of FTSE 100 firms source their income from the U.S.A.
FTSE 100 | FXCM: UK100
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
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