he FTSE 100 has that Friday feeling, rising 60 points as the week draws to a close in London.
- Equities put the icing on the cake after strong week
- FTSE eyeing up key level
- Euro skittish around $1.25 ahead of PMIs next week
The week is ending on a firmly positive note, with equities in positive territory and the usual bout of dollar selling helping to keep rallies in EURUSD, GBPUSD and others intact. Monday’s US holiday will see markets bereft of real volume, and while today’s gentle gains do not signal a mad rush into risk, the S&P 500’s push above the key 2730 level will be seen as an encouraging sign for the rest of the month. For the FTSE 100, the crucial 7300 level has been reached once again. We need a break above here to end the sideways drift that has prevailed since 5 February, something that has so far eluded us. What has been interesting is that US markets have once again performed better than
European markets since the lows of last week; despite a well-known love for European equities among fund managers, the US continues to steal the crown, thanks in no small part to the stronger euro.
A sunny day in London and a long weekend in the US means that things have generally quieter, and thus thinner liquidity has resulted in some key levels being defended across a number of markets. The dollar index is still grimly holding the 88 level, matching the January lows, although with positioning so extended it was going to be tough for dollar bears to make much progress today. Meanwhile EURUSD is watching $1.25 closely, with today’s sojourn above this level not proving sustainable. Flash eurozone PMIs next week mean that there is a lot to play for in euro crosses, with US PMIs on the same day (Wednesday) likely to throw in an extra dose of volatility too.
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