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FTSE extends losses after inflation falls to a five-year low

FXStreet (Mumbai) - The UK Equity index, Ftse, has extended its early morning losses after the official data in the UK revealed that the CPI fell to a five-year low of 1.2% year-on-year during the month of September.

The Ftse now trades 0.51% lower at 6334.80. Surprisingly, Utility stocks are still trading 0.39% lower despite a fall in inflation. Banking stocks have also extended their losses, trading 0.5% down at the time of writing. Meanwhile, the Oil and Gas sector has weakened further as the Brent crude prices slid below USD 89.00 levels.

Moreover, the fall in inflation to a five-year low may provide more room to Bank of England to hold interest rates at record lows for an extended period of time. Consequently, the GBP/USD plunged below 1.6 levels after the weak inflation data hit the wires.

Ftse Technical levels

The index is still trading above an immediate support of 6316, below which 6292 shall act as a strong support. Meanwhile, the day’s high of 6363.40 should act as a strong resistance level for the day.

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