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The FTSE is currently indicating a week open, are awaiting the very important UK Consumer Price Index. The Bank of England has been struggling for the last few months to maintain a balance between controlling inflation, and trying to jump start a sputtering economy. Todays data will show if the BOEs job will become easier or not. A weak CPI number will result in a very strong open for the FTSE.

Renewed worries about a slowing down economy across the world, has pushed oil prices to a 14 week low. While escalating tension in Russia , traders are worried that a slowdown will lower demand will continue to be the overall theme. We will be looking forward to Wednesdays Department of Energy inventory supplies, which tends to move the market. Gold is nearing 800 dollars for the first time this year, as the strength of the US dollar has forced all those holding gold as a hedge to sell out of their positions, While we feel this is overdone, the recover of the US dollar has began.

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The FTSE is currently indicating a stronger open, as traders are awaiting the release of the UK Producer Price Index, which is the measure of inflation incurred by the UK manufacturers. The repeating issue for why the BOE is not cutting the interest rates is inflation, and if todays number comes out weaker then expected, an interest cut becomes a possibility again.

Commodities took it on the chin last week, as the US dollar steamrolled all the major currencies. Oil, which was one of the losers, is being propped up mainly due to the tension between Russia and Georgia. While a ceasefire has been announced, there is risk for further gains if talks fail. Gold is being pushed along the same lines, as US is backing Georgia in the conflict, and some worry that it might be forced into another war.

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The FTSE is currently trading flat as traders are looking past Friday and towards the weekend, and who can blame them this has been a long and risk filled week. While there is no economic data out of the UK this morning, it seems like traders are embracing the reversal in the currency market that has been pushing the British Pound lower, making the FTSE an attractive investment to the US investors.

Oil seems to find a nice level of support before the 115$ per barrel mark, in fact some traders are talking about a technical rebound to the 125 level, which is being postponed due to the strength of the US dollar. Most commodities are going to suffer while the US dollar gains strength mainly due to the fact that those commodities are priced in US dollars

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The FTSE is currently indicating a higher opening as traders are hoping that the 3% gains in the US equities market will translate into gains for the FTSE. While there isnt any economic data out of the UK today, traders are getting themselves positioned ahead of the BOE interest rate decision due on Thursday.

Oil finally broke through the 120 dollar as traders realized that the hurricane is not going to hit any of the oil producing areas in the Gulf of Mexico. Add to this that we are almost finished with the summer driving season, we can see oil dropping below 110 dollars by the end of the month.

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The FTSE is currently trading slightly lower as traders are waiting for the release of the Constructions Managers Purchasing Index. Analysts are expecting another decline, and some traders are expecting an even worse number. We expect the negative news to hit the market like a brick, pushing the FTSE lower while traders try to figure out what can the BOE do to help the British economy.

Gold was hit real hard when the US employment numbers came out better then expected, while the economy lost jobs for the 8th straight month, these negative news were already priced in, as a result gold actually was sold off on the strength of the US dollar. We expect for gold to be very volatile for the next few days as more economic news are released, which will give us a glimpse of the US economy, and what will the US Fed do next. Oil which has been trading down from its all time high set in July is being affected by the cut backs in the airline industry, we believe that oil will break through the 120 dollars per barrel mark this week.
 
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