Morning Call by Traders University

On Friday the FTSE closed at 4,348 ending a mixed week down 87 points. In the early part of the week the index gained support from 4,400 but this proved to act as resistance on Friday. On Friday the Dow Jones industrial average fell 62 points or 0.8 percent, to 8,268 - falling 3.6% for the week. The S&P 500 index fell just 10 points or 1.1 percent, to 882.88, and the Nasdaq composite index fell 9 points or 0.5 percent, to 1,680. In Forex the British pound ended last week down against the US dollar and Japanese yen, but up versus the rest of the majors. The GBP/USD pair remained contained within the same rising channel it has traded within for nearly a month, despite the still bleak fundamental outlook for the UK, and is continuing to trade above the 1.5000 level. Friday news from the US showed that the Consumer Price Index remained stable in April according to the Labor Department. That was in line with economist expectations but higher than the 0.1% decrease seen in March. The Core CPI, which excludes volatile items such as food and energy, rose 0.3% in April, maintaining the steady pace of growth seen over the last few months. News highlights for the week ahead include GDP figures in the US and Japan, CPI in the UK and Canada, US Building Permits and Unemployment Claims, meeting minutes from both the Federal Reserve (FOMC Meeting Minutes) and the Bank of England (MPC Meeting Minutes) and Retail Sales figures from both the UK and Canada. The week wraps up with Fed Chairman Bernanke due to deliver opening remarks at the College Law School Commencement in Boston. High news today includes Reserve Bank of Australia Governor Stevens speaking at 23:10, which could move that currency. Today there is a Bank Holiday in Canada.