Morning Call by Traders University

Yesterday the FTSE closed up 35 points at 4,482, closing above the 200ema. This may be significant after the 130 move to the upside yesterday and is the second consecutive green bar. Yesterday’s 0.8% rise has seen the index open and close above the 200ema. Yesterday the Dow Jones Industrial average fell 29 points or 0.3 percent to close at 8,474. At 9:30 today we see the release of the minutes from the Bank of England’s May 7 meeting. The growth and inflation outlook published in the BOE’s Quarterly Inflation Report suggests that the central bank may be open to expanding its quantitative easing programme. If the minutes from the BOE’s most recent meeting reiterate this, the British pound could pull back sharply. For those trading the USD CAD Income Generator, at midday Canada’s month on month CPI figures are released, expected to rise by 0.2%, unchanged from last month. Core CPI month on month (ex volatile items) is predicted to move from 0.3% to 0.1%. Expectations are for almost unchanged prices. This means that should there be a surprise, USD CAD could shake on this inflation figure. Also worth noting that the price of oil has risen recently and Canada, being an exporter of oil, is highly affected by the price of oil and also by the Crude Oil Inventories that are published in the US today at 15:30. Also Stateside, Geithner speaks at 14.30 while the FOMC Meeting Minutes are released at 19:00 delivering in-depth insight into the economic conditions that influenced the Federal Reserve’s vote regarding where to set interest rates.