Uptrend unbroken

Dominic Picarda

I was caught out by yesterday’s weakness in the FTSE and EURGBP. No matter, though, as the downside was hardly significant in the scheme of things. A poor GDP figure from Germany was the main cause of the negative tone. It came as a stark reminder that the Eurozone remains in poor shape, even in its economic fatherland. The recent strength of the Euro will be doing little to alleviate the bloc’s difficulties, either.

For my part, I still fancy the FTSE to make further upwards progress in the very near term. The UK index is definitely to be preferred over Germany’s DAX right now. Meanwhile, I would be looking to short the end of any intraday rallies in GBPUSD, as I think worse is in store for sterling.

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