The FTSE traded marginally lower on Monday as losses on Wall Street limit any upside and support that sterling weakness may have otherwise provided. Today there are no major economic releases out of the UK, leaving much of the focus on speeches by a slew of Fed members as markets await Fed Chairman Powell’s testimony for monetary policy cues following a strong US non-farm payroll report. Moreover, updates from UK corporations may provide the FTSE with direction.
The FTSE traded within a tight range on Monday before ending 4 points lower at 7459. The index is hovering around the 20-period MA at 7550 which is to determine near-term direction on the day. Look for a sustained move below the 7550 level to indicate selling pressure with a break below 7525 required to target the support zone at 7500/7490. Alternately, a sustained move above 7570 would be required to drive the FTSE higher to meet resistance at 7600 followed by 7620.