The FTSE traded 0.08% lower on a day of low volume trading due to the US markets being closed. With the US publishing the NFP report today, markets are expected to see marked price action as weaker data would further support looser monetary policy expectations. On trade news, this morning China reportedly demanded that the US lifts existing tariffs as a condition to reaching a trade deal. Markets should monitor further trade headlines as it would determine a shift in sentiment over the recent trade optimism. Thus, the FTSE’s price action will largely depend on today’s economic data and sentiment over US-China relations.
The FTSE had a muted session on Thursday as it spent the day trading within a tight range before ending 5 points lower. The price has yet to overcome resistance at 7620 to target higher levels at 7645 and 7685. Moreover, The RSI reading remains in the overbought territory and we should see the FTSE test the lower support at 7570 should price exit the overbought region and show a sustained move below 7600. Breaking below 7570 would drag the FTSE to test the lower support around 7525 separating the index from a deeper pullback.