FTSE 100 Slumps on Strong Pound

Published by
Written By: Nikolas Papas
Share
    Summary:
  • FTSE 100 gives up 1.05% at 27,041 as investors digest the Fed decision and Pound jumps at 1.2957. During the Asian trading session China's manufacturing PMI

FTSE 100 gives up 1.05% at 27,041 as investors digest the Fed decision and Pound jumps at 1.2957. During the Asian trading session China’s manufacturing PMI contracted for a sixth consecutive month as it dropped to 49.3 in October from 49.8 in September to 49.3 in October, and below forecasts of 49.8. The non-manufacturing PMI came in at 52.8, below expectations of 53.7. European Monetary Union Unemployment Rate came in at 7.5%, topping expectations of 7.4% in September. European Monetary Union GDP s.a. (quarter over quarter) came in at 0.2%, also topping forecasts of 0.1% for 3Q. The European Monetary Union Consumer Price Index – Core (year over year) came in at 1.1%, above expectations of 1% in October.

Peugeot slumps while Fiat Chrysler jumps higher after the two carmakers agreed to a merger that will result in the fourth-largest automaker in the world.

UK heads to general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.

FTSE 100 Technical Levels to Watch

On the technical side, FTSE 100 makes fresh weekly lows after the index breached the 200-day moving average at 7,282 cancelling the rebound from seven-week lows on positive Brexit deal news. The index formed a death cross on October 10th as the 50-day moving average crossed below the 200-day MA giving a bearish signal for FTSE.

On the downside, first support stands at 7,249 today’s low, while a break below will open the way for a test of 7,200 the low from October 23. Below this support, the next support comes in at 7.150 the low from October 22nd. On the flip side FTSE 100 facing the resistance at 7,335 daily top and 100-day moving average a level where the index rejected the last six trading sessions. If FTSE manages to close above convincingly could open the way for a move up to 7,440 the September highs.

Written By: Nikolas Papas

Technical analyst of forex, stock market indices and commoditiesTechnical analyst of forex, stock market indices and commodities Skills: Technical Analysis · forex · Stocks · Crypto · Writing

Published by
Written By: Nikolas Papas