FTSE 100, GBP/USD and gold on the up
Technical analysis of the FTSE 100, GBP/USD and gold price as they rise towards recent highs.
Macro update:
Asian equities at record highs:
Asia-Pacific markets pushed further into record territory, with MSCI’s regional indices hitting new all-time highs, led by a 1.6% gain in Japan’s Topix and fresh peaks in Taiwan’s Taiex and South Korea’s KOSPI.
Momentum shrugs off geopolitics:
Risk appetite remained resilient as investors largely discounted US actions in Venezuela, focusing instead on strong equity momentum and sustained inflows into AI-related investments.
Oil drifts after initial spike:
Crude prices eased following Monday’s $1-a-barrel surge, as markets judged Venezuela-related risks to have limited immediate impact on global supply, leaving Brent crude oil around $61.60 and WTI near $58.10.
Metals remain strong:
Gold advanced 0.4% to roughly $4,466.00 an ounce, sitting within $100.00 of its record high, while silver and platinum climbed around 2.6% and copper pushed to fresh record levels on concerns over supply disruptions.
Dollar soft ahead of jobs data:
The US dollar edged lower versus the euro and sterling after Monday’s sharp reversal, with attention turning to Friday’s US jobs report and its implications for the Federal Reserve’s (Fed) easing outlook.
Europe and US futures firmer:
European equity futures signalled modest gains following recent record closes, while S&P 500 futures rose about 0.1%, extending advances led by energy and financial stocks.
FTSE 100 aims for new record high
The FTSE 100 is trying to regain its early January 10,052 record high, a rise above which may put the 10,100 region on the cards.
Support sits around the November peak at 9,928.
Short-term outlook:
Bullish while above the 2 January low at 9,896
Medium-term outlook:
Bullish while above the 9,423 November low
FTSE 100 daily candlestick chart
GBP/USD hits 3 1/2 month high
GBP/USD's November-to-January advance has resumed with the cross trading at levels last seen in September and the late July and August highs at $1.3589-to-$1.3595 being in sight. Further up potentially beckons the $1.3700 region.
Potential slips may find support between the October-to-December highs at $1.3534-to-$1.3527.
Short-term outlook:
Bullish while above $1.3402
Medium-term outlook:
Bullish while above the 17 December low at $1.3312
GBP/USD daily candlestick chart
Gold price heads towards record high
The gold price is seen heading back towards the $4,500.00 region with the December record high at $4,550.15 remaining in sight.
Minor support sits around the October $4,381.44 peak.
Short-term outlook:
Bullish while above $4,271.58
Medium-term outlook:
Bullish, eyes the $4,550.15 and above while remaining above the 16 December low at $4,271.58
Gold daily candlestick chart
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