. BoE's Rate Pause Boosts FTSE 100 - Market Insights

BoE’s Rate Pause Boosts FTSE 100 – Market Insights

BoE’s Rate Pause Boosts FTSE 100 – Market Insights

31 Oct 2023

FSTE 100 rises on rate pause bets.

FUNDAMENTAL OVERVIEW

The FTSE 100 in the UK concluded Monday on a positive note. This uptick was driven by optimism regarding a potential interest rate pause from the Bank of England (BoE) during its upcoming policy meeting. Additionally, the information and analytics firm Ascential saw a significant boost in mid-cap stocks due to a $1.70 billion deal.

The FTSE 100, which includes many export-focused companies, closed with a 0.5% gain, breaking a two-session streak of declines.

Investors are closely monitoring the BoE’s monetary policy meeting scheduled for Thursday. It is widely anticipated that the central bank will keep interest rates steady at their current 15-year high of 5.25%. Craig Erlam, senior market analyst at OANDA, noted, “A pause from the BoE is likely, and the focus will be on the economic forecasts.”

Recent data has revealed a decrease in employment levels and continued weaknesses in the business sector, which has bolstered expectations for a pause in interest rate hikes.

FSTE 100 TECHNICAL ANALYSIS DAILY CHART:

Technical Overview

FTSE 100 currently trading within a down channel.

FTSE 100 is positioned below the 20&50 Moving Averages (SMA).

The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a positive trend.

Immediate Resistance level: 7395.4

Immediate support level: 7316.3

HOW TO TRADE FTSE 100

The FTSE 100 initially saw an increase in its value, but it later experienced a decline and has since been trading within a specific range. Recently, the price tested its support level and rebounded from there in an upward direction. Presently, the price is approaching a significant resistance zone, and if this zone is breached, we may anticipate further upward movement.

TRADE SUGGESTION- STOP BUY– 7413.6, TAKE PROFIT AT- 7543.1, SL AT- 7330.4.