The FTSE traded 0.55% lower on Thursday as a strengthening pound weighs on the index’s exporters. The sterling is higher as the UK parliament’s efforts to avert a no-deal Brexit persist and improves market sentiment. The FTSE however was an underperformer amongst European Indices because of its domestic currency and failed to receive the same boost from US-China trade optimism fueled by news that the two nations would resume negotiations in October. Today, we may see the FTSE take directional cues from Wall Street as the US publishes employment data. It is worth noting that a continued strength in the pound should fairly limit the FTSE’s upside potential.
The FTSE lost 40 points to end at 7271 on Thursday. The price is seen trading within the range of 7345-7250 and has yet to take further direction. It is worth noting that the break above the 7235 level earlier this week negated the FTSE’s sequence of lower highs and provided a bullish view. A decline below this may suggest further downside to come and would lead the FTSE towards the support at 7200 followed by 7180. On the other hand, price would need to show a sustained move above the 7315 level to target the resistance at 7345 followed by 7380.