European Open: GBP/JPY taps 166 ahead of UK data dump

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Matt Simpson financial analyst
By :  ,  Market Analyst

Asian Indices:

  • Australia's ASX 200 index rose by 75.2 points (1.09%) and currently trades at 6,969.40
  • Japan's Nikkei 225 index has risen by 150.29 points (0.54%) and currently trades at 28,215.57
  • Hong Kong's Hang Seng index has risen by 507.63 points (2.69%) and currently trades at 19,362.25
  • China's A50 Index has risen by 221.79 points (1.68%) and currently trades at 13,416.87

 

UK and Europe:

  • UK's FTSE 100 futures are currently up 13.5 points (0.18%), the cash market is currently estimated to open at 7,364.57
  • Euro STOXX 50 futures are currently up 24 points (0.67%), the cash market is currently estimated to open at 3,594.04
  • Germany's DAX futures are currently up 98 points (0.75%), the cash market is currently estimated to open at 13,186.21

 

US Futures:

  • DJI futures are currently down -1 points (0%)
  • S&P 500 futures are currently down -9.5 points (-0.08%)
  • Nasdaq 100 futures are currently down -1.75 points (-0.04%)
20220912futuresCI

 

 

Sentiment was given a bit of a boost following reports that Ukraine had secured a series of military wins against Russia over the weekend. This saw Asian benchmark indices trade broadly higher, along with index futures for European markets.

 

The euro is currently the strongest currency and the pound is a close second, whilst the yen is the weakest. Reuters reported that ECB policymakers may need to raise interest rates to a minimum of 2% to fight inflation.

 

UK data in focus at 07:00 BST

A host of UK data is scheduled for 07:00 which includes GDP estimates, industrial, manufacturing and construction output and trade data. The GDP figures are estimates for July and expectations are it to rise from June’s -0.6% level which was distorted due to the Queen’s Jubilee public holiday. Output for construction, manufacturing and industrial slumped in June for the same reason, and any further weakness in today’s data could well weigh on the British pound.

 

GBP/JPY 1-hour chart

20220912gbpjpyCI

 

GBP/JPY has tested 166 ahead of today’s data dump as the pound has been dragged higher by the euro. The 1-hour chart shows that GBP/JPY has potentially completed a 3-wave retracement, where a break above 166.35 assume the resumption of its bullish trend. However, whilst prices remain below the resistance zone then we are also on guard for a swing high to form. The stochastic oscillator is also overbought and close to generating a sell signal.

 

 

 

FTSE 350 – Market Internals:

20220912moversFTSEci

 

FTSE 350: 4077.03 (1.23%) 09 September 2022

  • 315 (90.00%) stocks advanced and 26 (7.43%) declined
  • 8 stocks rose to a new 52-week high, 3 fell to new lows
  • 27.14% of stocks closed above their 200-day average
  • 42.29% of stocks closed above their 50-day average
  • 8.86% of stocks closed above their 20-day average

 

Outperformers:

  • + 12.88% - National Express Group PLC (NEX.L)
  • + 12.49% - Darktrace PLC (DARK.L)
  • + 8.00% - abrdn Private Equity Opportunities Trust plc (APEO.L)

 

Underperformers:

  • -14.63% - Bridgepoint Group PLC (BPTB.L)
  • -11.45% - Computacenter PLC (CCC.L)
  • -2.50% - Vistry Group PLC (VTYV.L)

 

 

 

Economic events up next (Times in BST)

20220912calendarBST

 

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