Yesterday European markets closed higher, as investors continue to speculate on a June rate hike by the Fed, we should have some clues next week at the Federal Open Market Committee’s (FOMC) meeting.
Today on the economic agenda we have the total trade balance in January from the UK with a previous number of £-2.895B and the Bank of England (BoE) Governor speech. On the other side of the Atlantic we have the retail sales in February from the U.S that is estimated to rise from -0.8% to 0.3% showing that consumer spending is rising and with it the inflation.
On yesterday session the UK100 initially fell but found enough buying pressure on Tuesday low to turn things back up and closed near the high of the day. The index is still in a bullish phase and is trading slightly above the 50-day moving average. The stochastic is showing an oversold market but still displaying bearish momentum.
Expecting an upward move to a daily resistance at 6,792 on a break above previous day high at 6,721.5 (scenario 1) or a break below the previous day low at 6,676 could pull the Index down to a daily support at 6,600 (scenario 2).
UK100 is a CFD written over FTSE100 futures.