The FTSE rose 0.99% to post its 4th successive day of gains on Friday. A weak jobs report out of the US supported global equities as the data was translated as a signal that the FED would ease monetary policy. In the UK, political uncertainty persists as parliament has yet to vote for a PM to take the place of Theresa May while Brexit’s course remains indefinite. On trade news, the US and Mexico had supposedly reached an agreement on Friday that would avoid US imposed tariffs and translate into improved sentiment on the global trade war. Today, the Footsie is in for major economic releases as the UK publishes GDP and Manufacturing production data. However the data may not have a major impact on the FTSE as market’s attention is drawn to trade developments and Britain’s political landscape.
The Footsie managed to extend gains past the resistance at 7270 to target the 7315 level before closing above it at 7331. The next key resistance level reside at 7370 and if broken could reinforce a bullish outlook on the Index as it brings into view higher levels at 7400 and 7470. Failure to overcome the 7370 level would lead price lower with a decline below 7315 required to target the lower support at 7270.
Support: 7315/ 7270
Resistance: 7370/ 7400