The UK100 opened Monday at 10376.9 and closed Friday at 10333.4, dropping 43.5 points or 0.42% across the five sessions. Wednesday saw the sharpest sell-off to 10294.9 before a partial recovery into the weekend.
Wednesday is the pivot point. US CPI prints at 12:30 GMT with Core CPI expected at 0.5% month-on-month and 2.9% year-on-year. The Bank of Canada announces its rate decision 75 minutes later at 13:45 GMT, with markets expecting the overnight rate to hold at 2.25%.
The ECB takes center stage Thursday with its rate decision at 12:15 GMT. Markets expect a 25 basis point hike to 2.40%. Friday brings UK GDP data at 06:00 GMT and preliminary University of Michigan consumer sentiment at 14:00 GMT.
If US Core CPI prints above 0.5%, expect immediate pressure on risk assets as rate cut expectations evaporate. The UK100 would likely test last week's low at 10233.7. If CPI comes in at or below consensus, relief could push the index back toward the 10400 resistance zone that capped three attempts last week.
The ECB decision adds a second layer. A hawkish surprise beyond the expected 25bp hike would weigh on European equities and likely spill into UK stocks. Watch how DAX 30 reacts for early clues on UK100 direction.
Traders are cautiously bullish with 60.7% long versus 39.3% short as of Sunday morning. This modest long skew suggests the market expects volatility but leans toward upside resolution if the inflation data cooperates.
The 10400 level rejected price three times last week and remains the obvious upside barrier. Below, Wednesday's low at 10277.2 is the first support, with last week's absolute low at 10233.7 as the line in the sand. These are reference levels for context, not entry signals.
Open an LHFX account to trade UK100 through this event-heavy week.
Byline: LHFX Research
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