FTSE Price Prediction: Covid19 fears Remain A Dampener

August 6, 2021 Off By admin-445
  • FTSE Price Reacts Mutedly To BoE Interest Rate Decision
  • Coronavirus Delta variant still causing problems for economic recovery
  • FTSE expected to trade sideways for the time being as inflation expected to continue climbing
  • The FTSE price was down a minuscule 0.14% on Friday morning as the blue-chip index continued to react rather mutedly to the BOE’s decision to keep its interest rate unchanged at 0.1%. The bank’s warning on rising inflation does not seem to have made much of an impact either on the FTSE price.Another issue that’s affecting the FTSE is the continued spread of the Delta variant which has been seeing a huge resurgence in the US. Although the UK has not seen the explosion of cases that was morbidly predicted after the 19 July reopening, these have risen slightly for a second day in succession giving investors some jitters.If you haven’t started trading forex yet, have a look at this .Short Term Prediction For FTSE Price: Trading Sideways Most Likely For NowAfter having increased considerably on Aug 3, the FTSE price remained at the same levels all the way through Thursday when the BOE made its expected interest rate decision. The bank’s warning on rising inflation does not seem to have made much of an immediate impact however, this could have been priced into market already.For the time being, the FTSE price is expected to hover between the 7100 and 7150 levels as the economic data is digested. The resurgence of the Delta variant and Covid19 fears may also continue to be a damper for the FTSE price. It also remains to be seen how the more relaxed travel rules will continue to pan out and if a substantial kickstart in consumer spending is generated.If you want to start trading forex then take a look at these .Long Term Prediction For London Stock Exchange: Inflation Remains the Key IssueInflation seems to be the main worry for further growth of the FTSE price on a long-term basis. The rise in GBP/USD is also a factor here.Commentators and economists also noted that the BOE remained dovish despite the continued rise in inflation. It does not look like the BOE will be tapering off its support to the economy anytime soon either as the Delta variant continues to wreak havoc.Joshua Mahony, senior market analyst at IG, a said: “The rise in sterling highlights how we are seeing a shift from the expectations that the Bank of England remain dovish despite rising prices. Instead, the BoE sees inflation peaking at a higher level than previously anticipated, with the MPC seeing CPI peaking out at 4%”.With such a high inflation rate, investors should surely have to take a decision sooner rather than later on their portfolios. With energy stocks rising and the continued debate on electric vehicles becoming ever more intense, the FTSE price should continue to react accordingly. Long term, the FTSE should be at around 7500 by the end of the year.Looking to trade forex now? Invest at eToro!67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

    Source: www.forexcrunch.com