Brenda Kelly, Head Analyst at London Capital Group, joined today’s Tip TV Finance Show to discuss EUR/GBP, FTSE 100, USD/JPY, Gold price, and crude oil.
EUR/GBP: Set to break lower?
Kelly starts by commenting how the recent UK macro data release exceeded expectations hugely, and looking at the events ahead, she sees probability of a EUR/GBP break below the key 0.70 level.
FTSE: Downside ahead?
Kelly believes that while below 6450, the FTSE 100 equity index sees downside risks towards 6270 to 6150 in the short-term.
She adds how the expectations of a rate hike in the UK has pushed up the mortgage applicatios, but UK data speaks other-wise.
On the rate expectations, she forecast Q1 2016 to be the likely timing for a rate hike.
USD/JPY: Near-term upside potential
On the USD/JPY, Kelly comments that the cross remains well anchored towards the 120.00 area, and maintains a near-term upside target at 121.75, and above it 122.20. If the Fed hikes rates in December, the cross can make an upside run towards 125.00.
Gold price: Higher or lower?
Gold remains a difficult trade, says Kelly as she highlights the two key levels for the pair. The pair has seen numerous breaks across the trendline and is now sitting on the 100 DMA.
Trade setup:
The precious metal closed at $1138 last week and could weaken towards $1120 on a break below $1135, but holding above the 100 DMA will see it rally towards $1155 and then to the 200 DMA at $1170.
She further adds that, unless the precious metal breaks above $1120, the market will remain trapped in a wide range.
For further insights on the markets and Oil, watch the video interview.