Morning Call by Traders University

On Friday the FTSE closed up 16 points and closed at 4,576, making the 10th consecutive buyers bar on the chart. The Dow closed up 23 points at 9,093 and the S&P closed up just 3 points at 979. Both of the major US indices appear comfortable trading above their 200ema and have broken recent level of resistance. In forex news, the dollar fell further on Friday and tested seven week lows against the euro together with a drop in the yen as US company profit announcements were better then expectations, and thereby fuelling risk appetite in lieu of safety. The euro appreciated for the second week after assessments reported that the rate of contraction in European manufacturing and service industries slowed more then forecast, in addition to a rise in German business confidence. The Canadian dollar also saw healthy rises on the back of oil price increases and the central bank statement that the nation’s recession is coming to an end. In major data releases watch out for the USD new home sales at 3.00pm.