Morning Call by Traders University

The FTSE 100 ended down 0.3 percent on Friday, led by banks dragged down by Lloyds Banking Group’s plunge on a worse-than-expected loss at its HBOS unit, while oil stocks offered a gleam of hope. The FTSE 100 closed 12.65 points lower at 4,189.59, after trading as high as 4,291.57. As an overview of the week The FTSE 100 was down 2.4 percent this week and is down 5.5 percent for the year after falling more than 31 percent last year.
The Dow closed down 82 points at 7850 on Friday. After opening modestly in the morning the index pulled back from the high of the day forming a tight consolidation on the 15 minute chart that lasted through the day. As the week begins, lookout for another test at around 7,700 if the index remains beneath the 8,000 mark.
In Forex-related data, German and Italian Preliminary quarterly GDP figures came in worse than expected on Friday at -2.1% and -1.8%. Friday was also Day 1 of the G7 meetings. In the US, University of Michigan’s preliminary Consumer Sentiment also came in worse than expected at 56.2.
There have been dramatic and rapid shifts in unemployment around the globe which has led to speculation that unemployment is now a leading rather than lagging indicator. This rapid reaction to declining demand is due to the deregulation of labour markets.
Forex news today: US banks will be closed in observance of President’s Day. Watch out for low liquidity and irregular volatility. No other significant news out today.