FTSE 100 remains close to record high while GBP/USD, gold stay sidelined
FTSE 100 remains close to record high while GBP/USD, gold stay sidelined ahead of plethora of central bank meetings.
Overnight summary
The Nasdaq 100 closed at a record high on Friday, lifted by Microsoft and Tesla, while the S&P 500 and Dow Jones slipped, as traders look ahead to a likely 25bp Federal Reserve (Fed) rate cut this week amid weakening consumer sentiment and soft labour data.
Asian markets opened cautiously with European indices likely to follow, with attention now turning to a series of major central bank decisions - including the Fed, Bank of England (BoE), Bank of Japan (BoJ) and Bank of Canada (BoC) - that will set the tone for global markets.
FTSE 100 targets record high
Last week the FTSE 100 managed to rally to 9,340, close to its August record high at 9,358, before coming off to 9,260. This level currently acts as support. As long as it holds, the recent highs remain in focus.
Were the 9,260 low to give way, however, the 5 September high at 9,253 would be in focus, together with the tentative April-to-September uptrend line at 9,227 and perhaps also the late July peak at 9,189.
FTSE 100 daily candlestick chart
GBP/USD capped by resistance
GBP/USD continues to be capped by its late July to current September highs at $1.3583-to-$1.3595 which acted as resistance last week.
Were the $1.3583-to-$1.3595 resistance area to be overcome, though, the early-to-mid-June highs at $1.3616-to-$1.3632 would likely be reached next.
While Thursday's low at $1.3494 holds, upside pressure is deemed to remain in play. If slipped through, the 55-day simple moving average (SMA) at $1.3460 may be revisited.
GBP/USD daily candlestick chart
Gold remains close to record high
The gold price continues to sideways trade in low volatility near last week's $3,674.00 per troy ounce record high, a rise above which likely engage the $3,700.00 region.
This scenario remains in play while Thursday's low at $3,613.00 underpins. Were it to give way, however, the 3 September high at $3,578.00 may be retested.
Gold daily candlestick chart
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