Morning Call by Traders University

There was no trading yesterday because of the Bank Holiday. The FTSE 100 closed on Friday up just 19 points at 4,365 with a high of the day just below the significant number of 4,400. There is still a lot of indecision in the market. The support level at 4,315 is still holding and it will be interesting to see whether the price action breaks up through the resistance or down through the support. With a Bank Holiday Monday in the US we have no new movement on the Dow Jones. Stock markets have been choppy over the past two weeks with gains that are then eradicated in end-of-week trading. Economic news last week - S&P downgrading the UK economy and raising questions about US debts - had the market reconsider gains made over the past few months. Key figures to watch out for in the US this week will be April home sales and the latest assessment of consumer confidence. Markets are also nervous about a possible bankruptcy reorganization filing for General Motors Corp on June 1st. Too early for clear direction yet. In Forex news we see the release of several figures released today. This includes: GfK German Consumer Climate which was released at 7:00, remaining the same at 2.5 points, and German Final GDP, also at 7:00 this morning, which remained unchanged at -3.8%. At 7:45 we have French Consumer Spending, previously 1.1% and forecast at -0.4 %, and at 9:00 we see the European Current Account, predicted to show a smaller deficit of - 7.5 billion, from -8.1 billion. At 10:00 we have European Industrial New Orders, predicted to turn positive, from -0.6 % to 1%. In the US, at 15:00 we have CB Consumer Confidence, predicted to rise from 39.2 to 42.7. This is the first significant figure for the dollar this week. At 12:50 am, we have two important releases from Japan: Monetary Policy Meeting Minutes and Trade Balance.