Technical analysis of the FTSE 100 as it range trades while the GBP/USD rally runs out of steam and the Brent crude price rallies.
DailyFX Real Time News 2026-07-13 11:53:43
Context: The FTSE 100 is currently range trading, while the GBP/USD rally has stalled and the Brent crude price has rallied. This market movement is influenced by various factors, including the recent missile and drone attacks between the US and Iran, which led to a surge in oil prices. The FTSE 100 briefly overcame its April highs last week but rapidly gave back its gains, and its short-term outlook is bearish while below the 10 July high at 10,546.
Key Facts
- The Brent crude price surged 4.1% to $79.11 a barrel after US and Iranian forces exchanged missile and drone attacks over the weekend, with Tehran targeting US military facilities across the Gulf and once again shutting the strategically important shipping route.
- The US dollar advanced against most major currencies as renewed concerns over energy-driven inflation increased expectations of additional central bank tightening, with fed funds futures now implying a 50.9% probability of two or more Federal Reserve rate hikes by December.
- The KOSPI fell 7.6% as investors unwound leveraged positions in chipmakers, while SK Hynix dropped as much as 8.2% in Seoul following profit-taking after its shares rallied 12.8% during their Nasdaq debut on Friday.
- The Nikkei declined 1.12% to 67,786.86 as rising energy costs clouded the corporate outlook at the start of the earnings season, with Kioxia sliding 8.92% and Yaskawa Electric falling 14.34% after reporting a 21.7% drop in first-quarter net profit.
- The GBP/USD rally stalled, having been rejected by resistance made up of the 11-to-15 June highs at $1.3433-to-$1.3461, with the area around the 200-day simple moving average (SMA) at $1.3395 being revisited.