Trading in the FTSE 100 (FXCM: UK100) has been muted since last week’s ECB rate meeting and price is trapped between the ECB rate meeting low of 6002 and the March 4 high of 6221.
A break to the above mentioned range is probably needed if momentum is to pick up. On a break to the upper limit, traders may aim for the December 29 high of 6322 as it’s the next resistance level in line. Beyond the December 29 high, the December 3 high of 6449 comes into play.
On a break to the lower limit of the 6002-6221 range, the short-term trend would turn bearish, which may in turn trigger further losses. In this scenario the February 24 low of 5839 would come into play, followed by the January 20 low of 5598.
Data on tap
Today, the U.K. ILO Unemployment Rate is expected to remain unchanged at 5.1% according to a Bloomberg poll. We note the low correlation between U.K. data and the FTSE 100, given that its constituents are somewhat more international.
Data which may have a higher influence on the global stock markets and could therefore affect the FTSE 100, are both today’s U.S. inflation report and the U.S. Industrial production figures. The first report plays a part in the monetary policy, while the latter set of numbers can be used to estimate U.S. GDP.
Later in the day, the Fed may alter its key rate, which is expected to remain unchanged. There will also be a press conference, which is used to inform the markets about the Fed’s view on the economy and its monetary policy.
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For the estimates and more economic indicators on tap today, see our economic calendar.
FTSE 100 | FXCM: UK100
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
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