FTSE 100 stocks started the session higher after the much-anticipated phase one trade deal between China and the USA signed in Washington yesterday. China agreed to buy 200 billion of US products and services as well to impose tighter rules on intellectual property. President Donald Trump said that the existing tariffs on Chinese imports would remain in place until the second phase of a deal had been agreed, probably after the US election.
InvestingCube's S&R Levels
Yesterday the UK CPI came in at 1.3% below the market consensus of 1.5% in December. The weaker CPI data increases the possibility for a rate cut in January.
Investors have increased bets for a rate cut in January after the dovish comments from BOE’s Saunders, Carney, Vlieghe and Tenreyo.
FTSE 100 is 0.05% higher at 7,645 as the positive momentum drives the index, making higher highs and higher lows.
On the downside, immediate support for the FTSE 100 index stands at 7,628 the daily low. In case the index settles today below that level the next support area will be met at 7,524 the low from January 8th. What can change the recent bullish momentum for the FTSE 100 index is a break below the 50-day moving average at 7,421.
An interest rate cut in January by the Bank of England will attract more bulls to join the action. The first resistance for the index stands at 7,653 the daily top. A break out could be the catalyst for the next resistance at 7,668 the December 27th high. While a break above will open the way for a move up to 7,727 high from July 30th 2019.