The FTSE has opened on the back-foot snapping three straight sessions of gains. Despite the slip lower this morning the UK index is still on track for gains in the region of 10% across the week, its first winning week since early February.

The big question is whether this is a false floor or whether it is the start of a more meaningful advance? The awful data is only just starting to show through. Chinese industrial profits slumped by the most on record. Italian and French consumer confidence is expected to plunge.


US consumer confidence in focus

US consumer confidence figures will guide trader’s sentiment this afternoon. After yesterday’s record breakingly dreadful initial jobless claims, consumer confidence in the US has to be on its knees. Whilst yesterday we saw dire data boost expectations of more US stimulus and lift markets higher, today we might not see the same reaction. There is a good chance that traders[fg1]  are still too nervous to hold positions over the weekend. This will be at telling signal as to how ready traders are to continue the push higher.

The number of cases in the US, the world’s largest economy have surpassed the number in China or Italy. Numbers over the weekend could escalate sharply.  


House builders under pressure as housing market stalls

Here on the FTSE UK house builders could struggle as the UK housing market is being brought to a near standstill by coronavirus. Even those that have exchanged contracts are being advised not o complete, with mortgage lenders extending mortgage offers for three months to help the rebound after the social distancing measures are eased.


Levels to watch

The FTSE has dropped 3% on the open after failing to push through resistance at 100 sma on 4-hour chart.

Immediate support can be seen 5448 (yesterday’s low) prior to 5254 (50 sma) and 4762 (low 23rd March).

On the flip side, strong resistance is at 5787 (today’s high & 100 sma) prior to 6230 (high 10th March).


CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 


GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  


NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News

Forex Majors