Morning Call by Traders University

Britain’s FTSE 100 is seen opening 39-40 points higher on Wednesday as sentiment was boosted by an unexpected increase in U.S. housing on Tuesday. Investors will be watching UK employment data at 0930 GMT for more evidence on the extent of the recession and how badly it is affecting the UK economy. Focus also shifted to the outcome of a Fed meeting later in the day and whether economic conditions warrants additional policymaker action to boost lending.US Stocks surged on Tuesday as an unexpected leap in housing starts pushed Home Depot as well as other retailers up. U.S. crude oil futures saw a sharp 4 percent rise which helped boost energy shares. Chevron (CVX.N) shares rose 3.8 percent to $65.31 and ranked as the Dow’s top gainer. The Dow Jones industrial average gained 178.73 points, or 2.48 percent, to 7,395.70.EUR/USD has remained above 1.3000 during the whole session, trading from a 1.3000 low to a maximum level of 1.3070. At the moment, the Euro trades several pips below the 1.3070/95 resistance area (Feb 9 and 10 high), and, above here, the Euro would return to levels of late January. The GBP/USD has remained moving above 1.400 in a narrow range from 1.4025 to 1.4070. The USD/JPY has edged down from a maximum level of 98.80 to right below the 98.55 resistance level.