By ForexTime
Key central bank decisions, top economic data, and another volley of corporate earnings could present fresh trading opportunities:
Monday, 6th May
Tuesday, 7th May
Wednesday, 8th May
Thursday, 9th May
Free Reports:
Friday, 10th May
FXTM’s UK100 caught our attention this morning after kissing a fresh all-time high.
Note: UK100 tracks the FTSE100 index – the benchmark measuring the stock performance of the 100 largest listed companies on the London Stock Exchange.
After ending April over 2% higher and hitting record highs along the way, it looks like the FTSE100 has got its mojo back. Bulls have been supported by easing geopolitical risks and expectations around the BoE cutting interest rates by August.
With all the above said, the week ahead could be volatile for the UK100!
Here are 3 reasons why:
The Bank of England is widely expected to leave interest rates unchanged next week.
So much focus will be directed towards the policy statement, BoE Bailey’s news conference and the quarterly Monetary Policy Report (MPR) – making it a super Thursday combo.
Note: Over 80% of the revenues from FTSE100 companies come from outside of the UK.
So essentially, when the pound appreciates, it results in lower revenues for those companies that acquire sales from overseas – dragging the UK100 lower as a result. The same is true vice versa.
Traders are currently pricing in a 45% probability of a 25-basis point BoE cut by June with this jumping to 89% by August.
Beyond the BoE rate decision, all eyes will be on first-quarter GDP figures published on Friday.
Markets expect a modest quarter-on-quarter growth of 0.4% as the economy rebounds from the mild recession in the second half of 2023. Also, keep an eye on the latest industrial production figures which could provide additional insight into the health of the UK economy.
The UK100 is firmly bullish on the daily charts with prices above the 50, 100 and 200-day SMA. However, the Relative Strength Index indicates that overbought conditions have been reached.
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
By InvestMacro The latest update for the weekly Commitment of Traders (COT) report was released…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
This website uses cookies.