The FTSE traded higher early Friday before it ended 0.23% lower. The FTSE was initially boosted by oil majors as oil prices rose amidst escalating tensions between the US and Iran. Later in the day, the pound mustered some strength and weighed on the index. While the prospect of looser monetary policy from the Fed and ECB supports global equities, it also provides support for the pound which could further drag on the Footsie. Moreover, this week’s attention shifts to US-China trade relations as the G-20 summit approaches and the US administration may have aggravated tensions as it blacklisted 5 addition Chinese companies. With no major economic releases for the day, price action should be determined by news-driven sentiment as markets cautiously await for further trade developments.
The FTSE ended 17 points lower at 7407 after dipping below the 7400 support level towards the 7370 level. A sustained move below the 7400 level would indicate selling pressure with a decline below 7370 required to drive the FTSE lower. Meanwhile, look for a trade and hold above 7420 to indicate buying pressure and enable another attempt at breaking the resistance of 7470 which would clear the way for further advances. The bullish trend remains intact so long as price holds above the previous low at 7315, while a move above 7470 signals a bullish continuation.