(FTSE) FTSE 100 Rallies In Response To Positive Economic Data, US Dollar Expected To See More Volatility

(FTSE) FTSE 100 Rallies In Response To Positive Economic Data, US Dollar Expected To See More Volatility

Summary:

  • FTSE showing signs of increasing amidst favorable UK economic data
  • US Dollar to have a busy week next week.

Read next: Major Index NASDAQ (IXIC) Sell Off After Equities Fall, Will the ECB Turn Hawkish? 

FTSE 100 Increasing

The FTSE 100 index rallied on Friday. This rally comes in the wake of the retail data released that well exceeded market expectations. Retail data came in at a 1.4% increase in contrast to the expected value of -0.2%. Food sales increased by 2.8% and car fuel sales also rose 1.4% in April. This data indicated to the market that consumers are showing resilience to the current economic situations.

In addition, the positive data has improved investor sentiment towards the UK market.

(FTSE) FTSE 100 Rallies In Response To Positive Economic Data, US Dollar Expected To See More Volatility - 1

FTSE Price Chart

US Dollar expected to see more volatility

Next week is full of important U.S economic data announcements and events which we can expect to add more volatility to the US Dollar. On Wednesday the FOMC minutes will likely give the market a clearer look at the thoughts of the current state of the US economy and whether or not we can expect to see more interest rate hikes. On Thursday the Fed will release their preferred inflation reading PCE which is expected to highlight the growing US pressures.

All the factors above will lead to a heightened volatility in the US Dollar.

Sources: finance.yahoo.com, dailyfx.com

Rebecca Duthie

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.