The FTSE started the week on a positive note, ending safely in the green on Monday as the pound fell following data which showed the UK construction sector shrank for the first time in 11 months in February. The FTSE 100 index closed up 27.66 points at 7,134. Uncertainty surrounding the UK's imminent exit from the EU has hit consumer spending as well. The latest BRC-KPMG Retail Sales Monitor figures released earlier this morning show a slowdown in sales in February across all categories. Meanwhile, helping the broader risk-on mood in Europe were hopes that the US and China could soon reach a detente in their ongoing trade war. Looking ahead to the rest of the day, we have services PMI from France, Germany, the UK and the US. Additionally, Bank of England Governor Mark Carney will appear before the House of Lords select committee at 1535 GMT.
The Footsie continued to edge higher since finding support at 7060, however failed to surpass the 50-period MA in yesterday’s session. While the move higher may look like a formation of a lower high since the index’s decline from its peak at 7260, until the price breaks through the support at 7060, further upside pressure remains likely should the index trade through the 50-period MA at 7160.
Support: 7060/ 7000
Resistance: 7170/ 7260