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
  • Evergrande shares jump as much as 32%, with over 240 million shares traded -BBG
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/F8psKaw1dB
  • PBOC injects net 110b Yuan in open market operations -BBG
  • RT @BrendanFaganFx: Hang Seng, ASX 200 May See Relief After Fed. Evergrande Set for Restructuring? #Evergrande #HangSeng #FOMC Link: http…
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/m42Rdv39Dx
  • Chinese estates' Evergrande loss assumes all shares sold -BBG #Evergrande
  • RT @FxWestwater: Australian Dollar Fights FOMC-Charged US Dollar After Upbeat PMI Data Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/22/Australian-Dollar-Fights-FOMC-Charged-US-Dollar-After-Upbeat-PMI-Data.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $AUDUSD https://t.co…
  • Heads Up:🇯🇵 Foreign Bond Investment (18/SEP) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/B041Lqtg3S
  • #ASEAN based #USD index continues to extend the bounce off September lows post #FOMC This follows a test of the 100-day SMA as well as a rising trendline from June Eyes on the 38.2% Fib extension before potentially retesting the July/August highs https://t.co/uZ7OEJurPs
FTSE 100 Is Little Changed Ahead Of Manufacturing Production

FTSE 100 Is Little Changed Ahead Of Manufacturing Production

Alejandro Zambrano, Market Analyst

Talking Points

  • It appears that bearish traders still have some grip of the FTSE 100, as bullish traders failed to lift price above the April 9 high of 6177 in yesterday’s session.
  • The 6177 to 6054 range has trapped the FTSE 100 and the short-term bias can be argued to be neutral on the price being trapped in this range.
  • The U.K. Manufacturing Production is on deck this morning and expected to decline by -1.9% YoY according to a Bloomberg News poll.

While the short-term trend is bullish, as the April 9 low of 6107 is higher than last week’s low of 6054, the bearish bias following the FTSE 100 reaching the April 21 high of 6433 is still influencing the FTSE 100. We saw this yesterday as the FTSE 100 failed to break above the April 9 high of 6177.

Instead, it appears that price is trading sideways between last week’s low of 6054 and the April 9 high of 6177 and that the true bias of traders might reveal itself first on a break to the 6177-6054 range.

The March 10 low of 6006 and the February 24 low of 5841 are support levels below last week’s low of 6054, while the intraday high of 6210, formed in the afternoon of May 3, and the April 27 high of 6341, are resistance level above the April 9 high of 6177.

The DailyFX Speculative Sentiment Index (SSI) is showing a reading of -1.7, implying that traders are net-short the CFD: UK100 and a contrarian view of herd sentiment suggest the UK100 may drift higher.

Released today are the latest reports on U.K. Manufacturing Production and Industrial Production. A decline by -1.9% YoY from -1.8% for Manufacturing Production is projected as per a Bloomberg News poll. While Industrial Production is expected to contract by 0.4% YoY from a contracting 0.5% in February.

The Manufacturing report is interesting as it gives us an idea of where the U.K. GDP growth might be headed and with the Manufacturing Production expected to contract further, from -1.8%, to -1.9% YoY. The growth prospects for the U.K. economy are not looking good at this moment.

The Manufacturing Production itself has been contracting following a year-on-year basis since mid-last year, and the PMI indicators published last week are suggesting more pain is ahead for the sector. For more on the PMI read GBP/USD Tumbles After Weak Markit/CIPS Manufacturing PMI.

Our Stock Market forecasts for Q2 2016 are now live on the site. Download them for free.

FTSE 100 | CFD: 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

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

DISCLOSURES