Market Roundup: FTSE 100 needs a break above 6450, Carney encouraged by resilient UK banks

Nick Batsford, CEO of Tip TV, was alongside Zak Mir, technical analyst for Zak’s Traders Café, and Alan Green, CEO for Brand Communication, when he opened the Tip TV Finance Show to discuss the USD/CHF, the S&P 500, as well as the UK banking sector, an update on the ECB meeting and an outlook for single stocks.

USD/CHF awaits bullish break above 1.0330

Batsford highlighted FX Street, who noted that the USD/CHF is on an 800-pip rally since October the 15th, taking the pair to a 5 year high at 1.0328 before it fell back to the 1.03 levels today. They added that the monthly chart for the USD/CHF suggests a correction from the 10-yr downtrend may have just begun, and thus they remain bullish above the 1.0330 which could occur if the US NFP beat estimates and then the target would be 1.05-1.0625 (May 2008 highs).

Banking sector up across the board

Green commented that Carney has been encouraged by the resilient UK banking system, with the whole sector being up across the board including Standard Chartered.

What will the ECB do on Thursday?

Mir outlined that Thursday is the big day for the ECB, and he believed that it will be interesting to see whether the EU continues policies such as zero interest rates which have failed to revive the EU. He added that the DAX has already factored in the QE bazooka likely to come from Draghi.

S&P 500 to continue to the upside

Batsford expressed that this morning the S&P 500 extended its narrow range consolidation of last week. He continued that the weakness is providing another entry window, with moving above the 2100 level being a strong indication that the August uptrend was resuming and new record highs being the target for the index.

Single Stock outlook

Green believed that the Alton Towers decline narrowed following the accident earlier in the year, he added that the share price remains just below the 200-DMA, and a break of this may see a return to the previous highs for Merlin Entertainment.

In terms of AFPO, which have been interviewed on Tip TV before, Mir noted that it retraced back to 1.8p, but with a line of support at 1.5p, he maintained a view that the glass is half full for AFPO.

Watch the video for further technical analysis on IMT, RRS, PTEC, RBS, HOME, PDL and CNEL, plus the FTSE 100.

Tags: USDCHF, US. US NFP, banking, Carney, UK banks, UK, Standard Chartered, ECB, EU, monetary policy, interest rates, rate hike, rate cut, DAX, QE, Draghi, S&P 500, Alton Towers, Merlin Entertainment, FTSE 100, AFPO, IMT, RRS, PTEC, RBS, HOME, PDL and CNEL