Ahead of ECB speakers and this week’s Eurozone statistics, European markets are slightly higher
FTSE 100 higher, up 14 points
The FTSE 100 is set to start the week on the front foot after a strong finish last week in the US.
Spread betting companies are calling London’s blue-chip index up by around 14 points.
Michael Hewson chief market analyst at CMC Markets UK said: “financial markets appear to have a rising conviction that central banks are on the cusp of a significant pivot on monetary policy sometime later this year, a view that appears to be getting additional traction now that a number of Fed policymakers appear comfortable with the idea of another step down in the central banks rate hiking cycle to 25bps next week.”
Several ECB policymakers are due to make appearances this week before they enter the traditional blackout period on Thursday. The central bank will hold its next policy meeting on Feb. 2.
On Monday, ECB board member Fabio Panetta is scheduled to deliver remarks to the European Parliament. His speech will come after ECB president Christine Lagarde said that the institution will “stay the course” on its recent aggressive interest rate hikes Lagarde argued at the World Economic Forum in Davos that prices in the Eurozone remain “way too high” despite optimism that inflation may have peaked.
Governing Council member Klaas Knot also said over the weekend the ECB should raise rates by half a percentage point at its next two meetings, adding that the time to slow down monetary tightening remains “far away.”
FTSE 100 TECHNICAL ANALYSIS
DAILY CHART:
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above 20&50 SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
FTSE 100 immediate resistance is at 7809.2 & its immediate support level is 7774.0
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in up channel; it will continue to trade upside until any trend reversal so, remain bullish on it.
