The FTSE traded 0.13% higher on Thursday as it received support from improved sentiment towards the US-China trade situation and a lower pound. The BOE policy meeting left interest rates unchanged and lowered Britain’s growth forecast while members of the committee supported the case for future rate cuts. Thus the domestic currency is drifting lower which should help keep the FTSE afloat. Moreover, news that China and the US agreed to gradually remove tariffs revived hopes of an imminent phase one deal. Today, China published better than expected trade data which should lift FTSE members reliant on a sturdy Chinese economy. Apart from the data, markets will continue to monitor trade headlines in order confirm the tariff news and buoy the bullish sentiment.
The FTSE traded higher on Thursday as price attempted to reach the resistance at 7441 however settled below the 7430 level before ending with a modest gain of 9 points at 7406. A break above the resistance at 7440 would affirm a more bullish outlook and target the higher levels at 7470 and 7500. Failure to trade above 7440 will leave the FTSE trading sideways with a decline below 7400 required to target the 50-period MA at 7360 separating the index from further weakness.
Resistance: 7440 /7470