Morning Call by Traders University

Yesterday the FTSE 100 closed down 8 points at 4,187. This forms the second close under the previous support level and 4,200. The Dow closed down 159 points at 8,163, which is its lowest level since the end of May. In Forex news, the yen has risen to a six week high against the dollar and the euro on further economic data adding to signs that the global recession is far from over. Japan’s currency typically strengthens during times of economic turmoil. With the G8 meeting underway in Italy, questions have again been raised on the possibility of a new world currency in lieu of the dollar, so expect further turbulence ahead. Sterling declined for a fifth day against the dollar on speculation the BOE will increase its asset purchasing program at its MPC meeting tomorrow. In data releases to watch for today effecting GBP is the Halifax HPI m/m at 9.00am.