GBP value, Brexit information and FTSE evaluation:EU leaders are starting a two-day assembly of the European Council right this m
GBP value, Brexit information and FTSE evaluation:
- EU leaders are starting a two-day assembly of the European Council right this moment, with the post-Brexit relationship between the EU and the UK on the agenda.
- Buying and selling in each GBP and the FTSE will probably be uneven as headlines emerge from the assembly suggesting progress, or the shortage of it, within the EU-UK commerce talks.
GBP/USD and FTSE at mercy of EU-UK commerce headlines
EU leaders are gathering in Brussels right this moment for a two-day assembly of the European Council, with the post-Brexit relationship between the EU and the UK the second merchandise on the agenda after a dialogue of the Covid-19 pandemic.
With no settlement on commerce but reached, each GBP and the FTSE 100 index of the main London-listed shares will probably be buffeted for the remainder of the week by headlines suggesting the EU and the UK are transferring nearer collectively or additional aside.
Meaning buying and selling will probably be uneven because the EU leaders debate whether or not progress is being made and the UK Authorities then decides find out how to reply now Prime Minister Boris Johnson’s deadline of October 15, right this moment, has handed with out a commerce deal.
GBP/USD Value Chart, Each day Timeframe (July 15 – October 15, 2020)
Supply: Refinitiv (You possibly can click on on it for a bigger picture)
Really useful by Martin Essex, MSTA
Obtain our recent This fall GBP forecast
For now, the 2 sides stay far aside on points resembling fisheries, honest competitors and dispute decision that should be agreed earlier than the present Brexit implementation interval ends on December 31. Nonetheless, it nonetheless appears probably that the EU and the UK will finally attain a skeleton settlement, with the small print to be labored out later.
Within the meantime, each GBP/USD and the FTSE 100 may very well be held again by a transfer into safe-haven property such because the US Greenback on the present resurgence of Covid-19 circumstances and fading hopes of a US fiscal stimulus package deal.
For GBP/USD, the important thing ranges to observe on the upside are the highs of 1.3082 and 1.3072 reached on October 12 and October 13 respectively. To the draw back the important thing help ranges are 1.2893 from the 20-day transferring common and 1.2830 from the 100-dma.
No signal of respite for the FTSE 100
In the meantime, the FTSE 100 inventory index stays beneath robust downward strain. It was one other 1.8% decrease in early London buying and selling right this moment – its fourth successive day by day fall. Right here, the important thing ranges to observe are the lows of 5,779 and 5,805 touched on September 21 and September 24. Notice that the worth is now effectively under the 100-dma, the 50-dma and the 20-dma, though the 14-day relative energy index (RSI) is now beneath the oversold stage at 29.07.
FTSE 100 Value Chart, Each day Timeframe (July 15 – October 15, 2020)
Supply: Refinitiv (You possibly can click on on it for a bigger picture)
| Change in | Longs | Shorts | OI |
| Each day | 24% | -24% | 3% |
| Weekly | 14% | -13% | 4% |
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— Written by Martin Essex, Analyst
Be happy to contact me on Twitter @MartinSEssex