Weekly Navigator: The Inflation Pivot
The master guide for the week ahead. We analyze the shift in global inflation expectations and how it's repricing the FTSE 100.
Welcome to this week's Navigator. The theme for the next five sessions is 'The Great Repricing'. As inflation data from the Eurozone comes in softer than expected, the market is beginning to pivot its expectations for central bank action in the second half of the year.
Equities: FTSE 100 Strength
The UK index is showing remarkable strength in the energy and banking sectors. I'm targeting a move towards 8,200 by month-end, provided we hold the support at 7,850. The dividend yields on the 'Big Six' remain too attractive for the big funds to ignore in this environment.
Forex: Euro Weakness
The EURGBP pair is at a critical juncture. We're approaching the multi-year support at 0.8500. A break here opens the doors for a significant Sterling run. I'm looking for short opportunities on every relief rally in the Euro this week.