FTSE 100, British Pound (GBP) Nudge Larger on Optimistic Information Movement

FTSE 100 and GBP/USD Worth, Chart, and Evaluation

  • Omicron might not be as extreme because the Delta variant, in accordance with latest research.
  • US Q3 GDP knowledge beat market expectations.

The FTSE 100 is buying and selling round 0.4% greater in early turnover mirroring features seen within the US yesterday and Asian markets in a single day. Information from South Africa that the chance of hospitalization from Omicron is considerably decrease than the Delta variant, echoed by new research from the Universities of Edinburgh and Strathclyde, is giving the markets a leg-up going into the festive break, as fears of additional lockdowns start to recede. Optimistic US financial information additionally helps the market regain latest losses with yesterday’s closing GDP print beating market expectations. Merchants ought to hold a watch out for US core PCE (13:30 GMT) and Michigan Shopper Sentiment (15:00 GMT) releases later immediately because the markets wind down for the festive break


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The FTSE 100 rebound from Monday’s sub-7100 low continues with the index presently quoted round 7,340 and nearing the 10-month excessive of seven,405 made on November 12. With fears of additional lockdown measures placed on maintain in the interim, the latest excessive might come below stress within the brief time period except the UK authorities follows by means of with their mooted plans of imposing new restrictions after this weekend.

FTSE 100 Every day Worth Chart, December 23, 2021

FTSE 100, British Pound (GBP) Nudge Higher on Positive News Flow

Cable is now coming into a cluster of previous resistance ranges that are prone to decelerate additional upside momentum. The longer-term outlook for GBP/USD appears to be like detrimental on the every day chart with an unbroken sequence of decrease highs and decrease lows nonetheless in place, however the cluster of help round 1.3160 ought to show troublesome to interrupt within the occasion of any sell-off. For now, 1.3412 ought to act as resistance.

Retail sentiment knowledge – see beneath – present that merchants have pared again their net-long positions and sharply elevated their net-short positions over the past week, suggesting a bullish contrarian bias for cable.

GBP/USD Every day Worth Chart – December 23, 2021

FTSE 100, British Pound (GBP) Nudge Higher on Positive News Flow

Retail dealer knowledge present 62.36% of merchants are net-long with the ratio of merchants lengthy to brief at 1.66 to 1. The variety of merchants net-long is 16.93% decrease than yesterday and 15.03% decrease from final week, whereas the variety of merchants net-short is 47.30% greater than yesterday and 38.57% greater from final week.

We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests GBP/USD costs might proceed to fall. But merchants are much less net-long than yesterday and in contrast with final week. Latest adjustments in sentiment warn that the present GBP/USD worth pattern might quickly reverse greater regardless of the very fact merchants stay net-long.

What’s your view on the FTSE 100 andGBP/USD – bullish or bearish?? You may tell us by way of the shape on the finish of this piece or you possibly can contact the writer by way of Twitter @nickcawley1.

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