- Summary:
- BOE decision and US-UK trade news in focus for a flat FTSE, discover the key support & resistance level with potential market impacts.
By the opening of trading on Thursday, the British shares rose, supported by optimistic investors ahead of an important BOE decision and the announcement of a trade agreement between the US& UK.
Earlier, the FTSE index rose by 0.25%, while the British Pound had fallen by more than 1% against the dollar to reach 1.32.
And for the German index, the DAX rose by 0.4%, with the French one, CAC40, climbed by 0.6%.
BOE’s Monetary Decision: How will it affect the FTSE100?
The Bank of England’s interest rate decision is the most important event for the markets today. Markets are expecting a rate cut of 0.25% amid tariff tensions.
Any change in the interest can lead to increased volatility across the market. This will affect the value of the British pound, as rate cutting will weaken the pound, which will impact the FTSE positively because this will be good for the companies that rely heavily on exports, as their goods become cheaper for international buyers.
Also, lower rates generally reduce borrowing costs for companies and boost investment and expansion, which makes stocks more attractive.
Technical Levels of The FTSE100:
According to the live chart, the index is still trading flat. As long as the FTSE is trading under the strong resistance at 8675.2, the bearish scenario is highly recommended. Once the index breaks down the support level at 8465.4, this will open the door to reach lower levels such as 8372.1 and then 8325.5.
On the flip side, any strong news affects the index positively and gives support to break out the strong resistance at 8675.2, going up would be more likely to go up and reach a new resistance of the Bollinger Bands at 8783.1
FTSE100 Waiting for the US-UK Trade Deal with Trump’s Hint of Major Announcement:
US President Donald Trump said that a major trade agreement will be announced on Thursday, and some reports convey that the UK is likely a partner. (FTSE 100 Index Up As Trade Tariff Talks)
This agreement could be a significant step towards closer economic relations, which will lead investors to keep their eyes on what will happen to help predict how the markets will react to it.