FTSE 100, GBP/USD bounce off support while gold price range trades
Technical analysis of the FTSE 100, GBP/USD as they bounce off support while the gold price sideways trades.
Macro update
Fed rate-cut expectations jump:
Markets now assign roughly a 75% probability to a 25 basis point Federal Reserve (Fed) cut in December following dovish remarks from John Williams.
Global equities rebound:
Asian and European stocks advanced, with the MSCI Asia-Pacific up 1%, while futures pointed to further gains across the Nasdaq 100, S&P 500, FTSE 100 and DAX 40.
Dollar steady as yen stays under pressure:
The Japanese yen hovered near a 10-month low, with traders wary of potential Japanese intervention during a week of thin liquidity.
US data delays blur the outlook:
The recent government shutdown has postponed key releases - including October consumer price index (CPI) - leaving policymakers with limited visibility on the economy’s underlying momentum.
Oil softens on geopolitical signals:
Hopes that US-Ukraine talks could ease sanctions on Russia kept crude prices subdued, while sterling firmed ahead of the UK budget announcement.
FTSE 100 bounces off support
Last week the FTSE 100 dropped to 9,423 before bouncing back and forming a bullish engulfing pattern on the daily candlestick chart.
The 9,600 region stalled the bullish reversal, though, and did so again on Monday morning.
Once overcome, the 9,637-to-9,638 Wednesday 5 and 7 lows may be reached next ahead of the 9,750 area.
Slips may find support between the 55-day simple moving average (SMA) and the 19 November low at 9,514-to-9,497.
FTSE 100 daily candlestick chart
GBP/USD grinds higher
GBP/USD is trying to move away from last week's $1.3038 low whilst aiming for the September-to-November downtrend line at $1.3174. This needs to be breached for the mid-November high at $1.3216 to be reached.
Were a fall through last week's low at $1.3038 to ensue, though, the early November low at $1.3010 may be reached.
GBP/USD daily candlestick chart
Gold sideways trades
Last week the spot gold price dipped to $3,997.99, a level above which it has been hovering for the past week. Together with the August-to-December uptrend line at $4,033.37 it offers support.
While this area holds, the $4,150 region may be revisited. Were it to give way, though, the gold price may slip towards the late October low at $3,886.47.
Spot gold daily candlestick chart
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
