Morning Call by Traders University

On Friday the FTSE 100 closed down 19 points (0.45%) at 4,442 marking the end of another mixed week. The index is slowly snaking its way up towards 4,500 and the level of resistance at 4,520, and is gaining support from the 20ema. On Friday the Dow Jones rose a modest 28 points (0.3%), to 8,799 making this its highest close since 6th January. The recent 85-day Bull Run in US stock markets may have further to run but for now is in pause. The market is not responding to positive economic news in the same way that it was only a few months ago and the rally isn’t likely to restart until traders have a better sense of what will happen with interest rates (and inflation), the USD, corporate profits and particularly the banking sector. Today’s FX highlights are American TIC Long-Term Purchases at 2pm. TIC Long-Term Purchases show where the money is going - into the use or outside. The figure is expected to stand at 58.1 billion. Any surprise will shake the greenback across the board. Swiss PPI is predicted to rise by 0.1% after falling last time. The Swiss hope for some rise in prices. This is a critical week for the Swiss Franc. Deutsche Bundesbank President Axel Weber, a senior member of the ECB, will speak today. Since no other European indicators are published today, his words could well move the EUR/USD.