In the U.K., stocks opened with firm gains as the pound slumped after U.S. President Donald Trump said U.K. Prime Minister Theresa May’s plan for a so-called soft Brexit would damage the likelihood of a trade deal between Britain and the U.S. A weak pound can increase revenue made overseas by multinational companies, which are heavily weighted on the FTSE 100 index.
May’s government on Thursday published a 120-page report that provided further details on the vision for the U.K.’s future relationship with the European Union and mainly calling for friction-less trade in goods between the U.K. and the EU. Looking ahead, the UK employment data tomorrow and the inflation reading on Wednesday will dictate the price action this week on the FTSE 100.
From a technical perspective on a 1-hour chart, the index still looking slightly bullish with price above the 100MA. It remains to be seen however if the UK employment data tomorrow will prompt a breach of the major resistance level around 7705.
Support: 7500 7430
Resistance: 7705 7777