The FTSE 100 muted ahead of US & UK CPI data with US CPI due today at 13:30 GMT. UK CPI due tomorrow at 07:00 GMT

The FTSE 100 is currently trading at around 7,405 ahead of both the UK and US CPI data. The US CPI is due today at 13:30 GMT whereas the UK CPI is due tomorrow at 7:00 GMT. The expected reading for the UK’s inflation is a fall to 4.8% year-on-year. Looking at the chart from a technical perspective, the index has been rather rangebound between 7,319 and 7,484 (highlighted by the yellow channel). The direction of the FTSE is so far muted with markets awaiting the key data, however, the key areas of how the data may affect the index have been presented. A break above the resistance of 7,484 could then see the FTSE rise towards 7,548. On the other hand, a break below the support of 7,319 could see the index slide lower towards 7,249. Looking at the technical indicators, the MACD is slightly positive but the MACD line remains below the 0-line (reads -21). The RSI remains neutral but has faltered as it now reads 47. A reading higher than 4.8% would suggest that inflation in the UK persists, this may increase the likelihood that the Bank of England will keep rates higher for longer. A reading lower than 4.8% would demonstrate that inflation in the UK is deflating and approaching the target of 2%. In Minipip’s opinion, a reading that comes in line with expectations will be positive in the short term, but in the longer term, it may not be enough for the index to rally.