- The FTSE price has increased slightly over the past three days with a positive end to the week expected.
- International situation still having an effect on markets
- Covid19 fears appear to be slowly dissipating although economic recovery remains tepid.
The FTSE price has increased slightly over the past days and is currently trading at the 7138 level or a minute 0.15% rise over the past 24 hours. The bomb attack news that occurred yesterday at Kabul Airport in Afghanistan did not have any real effect on the UK100 although the situation remains fluid.
And although Covid19 concerns remain on the horizon, it seems that these are retreating slowly as the economy continues to re-open. Tepid data from retail continues to be a drag on the FTSE as a whole with two daily sessions largely neutral and two others in positive territory. The same smallish price movements are expected over the coming weeks as the international situation continues to develop.
If you want to start trading forex and haven’t started yet, then you should take a look at this Trading Forex For Beginner’s Guide.
Short Term Forecast For FTSE Price: More Neutral Movement Expected
At present the FTSE price appears to be in a bearish scenario and one can expect further falls, albeit small ones. The long-term ascending trend remains intact however and the charge to the 7500 level does not seem to be that far off.
Inflation is another issue that remains on the horizon and the recent Flash PMI results indicate that this should remain on the high side.
A bullish thesis would see the FTSE price rise by around 1% and begin tackling the 7200 barrier. If that were to break then a push to the 7300 level would not be off the cards. However, with the international situation as it is, some one-off event could have investors pressing the panic button.
A bearish scenario would have the FTSE price descending to the 7100 mark, where it should find strong support. However, a sell off similar to that which occurred last week could easily see the FTSE descend considerably lower.
Long Term Forecast For UK100: Still Bullish As Economy Opens Up
The international situation in Afghanistan does not seem to have had much of an effect on the FTSE price. With the Covid19 situation seemingly under control, there’s been a muted recovery in the UK economy and high inflation does remain a worry.
Analysts are still predicting a bullish scenario for the FTSE price however. As investor confidence continues to pick up, so should retail sales and other crucial economic indicators. Although the issue of pent up demand remains debatable, the next few weeks should be extremely interesting for the FTSE price long term.
Looking to trade forex now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.