Morning Call by Traders University

The FTSE closed up yesterday 86 points at 4,164, amid claims that the British economy will shrink until the fourth quarter of this year as the world endures its slowest growth since the end of World War II. The Dow climbed more than 140 points to close at 8,078, as encouraging news on home sales permitted Wall Street to set aside some of its anxiety. It continues to test support at 7,900, as declining volume indicates that support maybe weakening. The S&P opened at 825 and breaking through near-term resistance levels closing at 838 yesterday, which essentially sparked late-day strength. Look for continued near-term strength above key support levels.
In the Forex markets the AUDUSD posted a modest rise following the recent reduction in official cash interest rates to 3.25% and the Australian government announcement of a A$42 billion stimulus package. Overnight, better than expected AUD Retail Sales figures of 3.8% were announced. Data releases due today are the GBP Services PMI is due at 9.30 GMT with the expectation at 40.3. At 13.15 GMT the USD ADP Non-Farm Employment Change is due for release. This figure is an indicator to the official Non-Farm Payroll which is due for release on Friday. The estimate is for job losses of 528K in the last month. For those of you trading into the evening the New Zealand unemployment figures are due for release at 21.45 GMT which is expecting to a worsening unemployment rate to 4.6%. Good Trading.