In the next hour, we are expecting decisions meeting by Mark Carney relating to ( interest rate decision) . Obviously, this is more likely to affect currency than the FTSE due to the fact that interest rates play a huge role in the strength of the GBP and other factors such as export and the prices of overseas products. The economy has been doing well over the past few months:
Consumer price Index has risen from the first quarter of the year(January) from 127.07- 128.23 just in time to be ready for the rate hike in America.
Unemployment has been on a steady decline this year with just an increase in May to 5.6% from 5.5% however wages rose which indicates that companies and employers are making steady profit to increase the wage margin for workers.
The last indicator is Retail sales(MOM), this is a indicator and plays with major factors however it has decreased from 0.30 to -0.20. All in all, the retail sales has had better months than bad this year.
All these indicators signify a decent growth in the economy and could prepare us for a September or early next year when the interest rate hike happens in America.
On the daily, FTSE 100 has been on a downward trend channel therefore favoring short term short trades. However, yesterday it edged higher out of the channel but failed to close.
Today, after the decisions have been made by Carney could give us an idea of the true direction of this market and it is advisable to wait for for a strong close above 6734 resistance before going long and stop just below at 6727.