FTSE 100 HOLDS STEADY AS INVESTORS REFOCUS ON BOE DECISION

UK stocks started November on a positive note as the focus shifted to the upcoming interest rate decision by the Bank of England (BOE). The bank is also expected to turn hawkish considering inflation has jumped while the unemployment rate has declined. Stocks also rose after signs emerged that the UK economy was doing relatively well. Data published by Markit showed that the manufacturing PMI rose to 51.8 in October, higher than the previous 51.1.

The best-performing stocks in the FTSE 100 were BT Group, Lloyds Bank, GlaxoSmithKline and Rolls-Royce. Barclays was among the worst performers after the company announced that its CEO would step down. Jes Staley’s resignation was associated with the investigation into his affairs with Jeffrey Epstein. Meanwhile, in a major blow to the London Stock Exchange (LSE), Ryanair announced that it was considering delisting its stock because of Brexit. That would be a blow since it is the biggest publicly-traded airline stock in the UK. Recently, BHP also announced that it would delist its UK-traded shares.

The euro remained under pressure after weak German retail sales numbers. According to the German statistics agency, the country’s retail sales declined by 2.5% in September after they rose by 1.2% in the previous month. That decline was better than the median estimate of 0.6%. The sales declined by 0.9% on a year-on-year basis. These numbers are important because retail sales are closely correlated to consumer confidence and spending. The data came a few days after the latest European Central Bank (ECB) decision. Elsewhere, in Switzerland, the manufacturing PMI declined from 68.1 to 65.4.

EURUSD

The EURUSD attempted to erase most of the losses that happened on Friday last week. The pair rose to a high of 1.1572, which was higher than the intraday low of 1.1535. On the four-hour chart, the pair managed to move below the 25-day moving average while the Average Directional Index (ADX) rose to 35. The pair is also approaching the important resistance level at 1.1583, which was the lowest level on Thursday. Therefore, there is a likelihood that the pair will resume its bearish trend in the near term.

GBPUSD

The GBPUSD pair declined sharply as traders refocused on the upcoming interest rate decision by the Fed and the Bank of England (BOE). The pair managed to move below the lower side of the descending trendline shown in pink. The 25-period and 15-period moving averages also made a bearish crossover pattern while the Relative Strength Index (RSI) continued declining. Therefore, the pair will likely keep falling as bears target the key support level at 1.3600.

BTCUSD

The BTCUSD pair recovered as demand for the currency rose. The pair managed to rise to 62,195, which was higher than last week’s low of less than 60,000. On the four-hour chart, the pair managed to move above the short and longer-term moving averages. Oscillators like the Relative Strength Index (RSI) have also been on an upward trend. Therefore, the pair will likely keep rising this week.