FTSE At Key Level
The FTSE is now trading back around its highest levels of the year. Following a frustrating sideways period over the last six months, price action is now suggesting room for a proper directional move. Given the rally over recent weeks, the market is now at risk of a topside break above the 7241 level, targeting 7362. However, caution is advised here given the divergence in indicators, with risks of a false break higher and potential reversal lower thereafter. With this in mind, keep an eye on candles as we break the highs.
Key Data to Watch
The big UK release this week will be CPI tomorrow, with the market looking for an unchanged reading around 3%. Should we see any upside surprise, this will likely weigh on the FTSE, putting more focus on BOE tightening risks. Any disappointment, however, will likely act as a catalyst for higher FTSE prices near term.