The FTSE 100 was flat on the day despite stronger-than-expected PMI numbers from the British economy. There is hope that a Brexit deal is near, but the stronger pound is taking the wind out of the FTSE’s sail.
PMI numbers from the U.K. saw services come in at 45.8 versus expectations of 42.5, while manufacturing was stronger with a reading of 55.2 against a forecast 50.5. Traders are likely looking ahead to future numbers that will be hit by further government lockdowns in force until early-December.
Brexit news into the weekend said that a deal was “95% done” and this will give the market hope that legislation can be drawn up in time to be approved by the U.K. government, MEPs and the EU27 member countries.
The FTSE 100 has been consolidating around the resistance at 6400 and needs a catalyst to move higher. The index fell below a steep uptrend line and the 50 moving average would provide support for the downside. A move through 6150 could see a test of 5900. Support above 6400 is needed for further gains. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
