Barclays Share Price is on a Freefall Ahead of UK’s Key Inflation Data and Fed’s Decision

Barclays share price is among the hardest hit stocks by the ongoing debacle in the banking sector. The BARC stock has seen more than 14% of its value wiped in the last week, while its year-to-date price remains 12.51% lower. The bank’s total market capitalization has crashed to £22.1 billion.

Banking Fiasco

Barclays share price has been under intense pressure for the past few days amid the recent crisis in the banking stock. The collapse of Signature Bank and Silicon Valley Bank (SVB) saw most banking stocks in the US and UK crash as contagion fears rapidly spread in the markets. The closure of Signature bank recorded the second-largest biggest bank failure in the United States.

Major banks such as First Republic Bank and Credit Suisse have crashed over the past few days, losing more than a quarter of their value. Even so, there seems to be hope for Credit Suisse after UBS agreed on Sunday to buy the bank for $3.25 billion. According to a statement by the Swiss National Bank, the takeover of Credit Suisse by UBS will secure financial stability and protect the Swiss economy.

Banking stocks have been dragging UK’s benchmark FTSE 100 index for the past few days, with Barclays as the worst performer. Even so, it is not alone- Standard Chartered, Prudential, NatWest, Lloyds, HSBC, and Intermediate Capital are also in the red.

Focus has now shifted to UK’s key inflation data set to be released on Wednesday. Analysts expect the Consumer Price Index (CPI) for February to decline to 9.8% YoY while the monthly CPI data remain unchanged at 0.6%. The Bank of England is also expected to release its monetary policy committee (MPC) meeting minutes later on Thursday. The US Federal Reserve is also set to release its interest rate decision on Wednesday.

Barclays Share Price Outlook

The daily chart shows that Barclays share price has been on a steep decline for the past few days. At the press time, the stock was trading 7.70% lower at 128.82p. The banking stock is moving below the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) is in the oversold region at 20, while the Moving Average Convergence Divergence (MACD) moves further into the bearish zone.

Therefore, with the current crisis in the global banking system, the BARC stock price is likely to fall further. If this happens, the next support levels to watch will be 127p and 100p. Bulls need to gather enough momentum to push the price past 152p to invalidate the bearish view.

BARC Price Chart

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