Thursday, November 26, 2015 11:06 AM EDT
FTSE 100 soars to new highs and takes out the November 19 high of 6367 in the process. The break to 6367 opens up for a rally towards the November 5 high at 6422. Short-term traders will probably use the 6320 intraday low from November 25 as a base for long positions aiming towards the 6422 high.
There are no lack of drivers to the current rally, rather I see the stock market as catching up with yesterday’s U.S data. Growth indicators like the Markit Services PMI, durable goods orders, and jobless claims beat expectations, while inflation (PCE and Core PCE) remained unchanged and did not increase as the market had expected.
This really is the best of both worlds as equities tend to rally on prospects of higher growth and low inflation. Such does not warrant aggressive rate hikes by the Fed.
The low inflation makes it also less likely to get aggressive positioning in the Dollar, helping commodities and in return the FTSE 100.
There is no key data on tap today.
DISCLOSURES
DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
less
How did you like this article? Let us know so we can better customize your reading experience.
