The FTSE 100 Index might fall in the medium term, according to our technical and fundamental analysis. The MACD on the daily and weekly charts is negative. The price has already reached EMA 20, 50, and 100 on the weekly chart, and this is a signals for downtrend. A medium-term target for this pair is 6818 where is Fibo 0.50 on the daily chart.
Politics in the UK is likely to remain messy as we approach the Brexit deadline. The government, led by Boris Johnson, made it clear they aren’t willing to renegotiate the withdrawal agreement without the removal of the Irish backstop. On the other hand, European leaders made it clear the withdrawal agreement is not open for renegotiation.The Brexit uncertainty is likely to be a challenging time for the UK economy.
The most important data from this week:
UK Unemployment change (62k expectation); ( 28k previous)
UK Unemployment rate (3.8% expectation);( 3.8% previous)
UK CPI MoM (-0.1% expectation); (0.00% previous)
YoY (1.8% expectation); (1.8% previous)
UK PPI MoM (0.6% expectation); (-1.4% previous)
YoY (0.3% expectation); ( -0.3% previous)