Is now the perfect time for FTSE 100 gains? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

The FTSE 100 is entering a strong patch according to its last 10-year seasonal pattern. In the last 10 years, the FTSE 100 has risen a total of 7 times out of 10. The largest gain was last year with a strong +7.91% increase. The largest loss was -7.84% in 2012. There are a number of factors that would support FTSE 100 gains over the coming month. The UK is expecting s strong economic bounce back with a fast vaccine roll-out programme. The Scottish National Party failed to get an overall majority, so that means the chance of a successful Scottish referendum is, although still possible, less likely. A large amount of pent up savings in the UK of around £150 billion are now poised to be released into the economy and could send the FTSE 100 higher this month.

Will the strong seasonals and fundamental outlook send the FTSE 100 in May?

Trade Risks:

Over the longer term, May tends to be a weak seasonal month for stocks. However, recently FTSE 100 stocks have been quite well supported during May.
The main risk to this trade is from any risk-off tones which may pull equity markets lower.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.