The pound's losses were FTSE's gains on Friday as the index closed at 7477.9, adding 100.8 points after a speech by Prime Minister Theresa May demanding new proposals from the EU to break the Brexit “impasse” after the Chequers plan was rejected by EU leaders. European leaders were hoping to have a deal in place at the official EU summit in October, but now this deadline has been moved to mid-November where another summit is likely to be held. PM May's speech also had positive implications on the export-heavy blue chip index. In economic news, the BoE Financial Stability Report will be released at 08:00 GMT and the CBI Industrial Trends Orders (Sep) at 10:00 GMT. Global equity markets are under pressure again as the US-China trade war reignites with the Chinese expected to release a white paper today on the trade frictions with the United States.
On Friday, the FTSE fell one point short from reaching our resistance level at 7502.2 to retrace lower in today's trading as strong bullish momentum keeps prices above the 20-period SMA, 50-period SMA, and 200-period SMA on the hourly timeframe. Market direction to be confirmed as price reacts to our resistance level at 7502.2.
Support: 7419.6 7342.2
Resistance: 7502.2 7549.4