European Open: FTSE bulls eye break of 8k, USD/CAD turns resistance into support

Asian Indices:

Australia's ASX 200 index rose by 35.1 points (0.49%) and currently trades at 7,259.90
Japan's Nikkei 225 index has risen by 86.58 points (0.32%) and currently trades at 27,510.54
Hong Kong's Hang Seng index has risen by 85.49 points (0.43%) and currently trades at 20,029.00
China's A50 Index has fallen by -22.93 points (-0.17%) and currently trades at 13,316.09

UK and Europe:

UK's FTSE 100 futures are currently up 4.5 points (0.06%), the cash market is currently estimated to open at 7,939.61
Euro STOXX 50 futures are currently up 4 points (0.09%), the cash market is currently estimated to open at 4,252.01
Germany's DAX futures are currently up 19 points (0.12%), the cash market is currently estimated to open at 15,400.43

US Futures:

DJI futures are currently up 40 points (0.12%)
S&P 500 futures are currently up 30.75 points (0.25%)
Nasdaq 100 futures are currently up 6 points (0.15%)

Australian retail sales rose 1.9% in January, which keeps the pressure o the RBA to continue hiking interest rates
Australia’s current account surplus rose to a 5-quarter high of A$14.1 billion
New Zealand’s business outlook was its least pessimistic in four months according to NBNZ
Whilst pricing intensions remain historically high, they were lower on the month
Mixed data from Japan saw industrial output fall at its fastest pace in 8-months at -4.6%, yet retail sales rose 6.3% y/y
BOE member Jon Cunliffe speaks at 10:15 GMT: Treasury Select Committee hearing: The crypto-asset industry (10.15am)
BOE member Catherine Mann speaks at 12:30: Panellist at EIB Annual Forum and Chief Economists Meeting, ‘Interaction of monetary and fiscal policy and financing conditions’ Luxembourg
It’s the last day of the month which leaves markets vulnerable to quirky price action due to month-end rebalancing
Inflation data and consumer sentiment for France is scheduled for 07:45, with Spanish CPI at 08:00 alongside Swiss GDP
US retail inventories is released alongside Canadian GDP at 13:30, which puts USD/CAD into focus for currency traders

USD/CAD 4-hour chart:

USD/CAD trades within a bullish trend on the 4-hour chart, with yesterday’s low forming above a prior resistance level. Prices are also back above the 20-dar EMA and the weekly pivot point, so perhaps we have seen the swing low. Strong economic data from the US could send the pair higher on bets of a more aggressive Fed, with a soft GDP report for Canada also likely to be beneficial to the bullish bias of USD/CAD.

FTSE 100 daily chart:

The FTSE snapped a 4-day losing streak yesterday, after the pullback from its record high found support along the bullish trendline. A bullish engulfing candle also closed above the 10 and 20-day EMA’s, after the RSI (2) went into oversold territory the day prior. So it appears a swing low has formed and we’re looking for a move back above 8,000 whilst prices remain above last week’s low.

Economic events up next (Times in GMT)

-- Written by Matt Simpson

Follow Matt on Twitter @cLeverEdge

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