Erikthered
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The FTSE is currently indicating a flat open, while traders are awaiting the release of UK inflation numbers. After yesterdays stronger then expected CPI numbers in EU, traders are expecting the same results in Britain. This would put the end for any hope of an interest rate cut; in fact some say that it would pressure the BOE to increase rates at the next meeting. We believe that the FTSE will open in negative territory as the threat of an interest rate hike is negative news for equities. Not all is bad, as the rumour of the stronger then expected inflation numbers has boosted the Sterling Pound, from last weeks low of 1.9420 to 1.9675.
Oil was little changed yesterday, and will probably stay that way until the next report out of the US, which is due out Wednesday. Everyone is expecting a build-up in reserves as more and more consumers are moving away from driving big cars, and some are switching to bikes. Gold is back on track, mostly on the weakness of the US dollar, we expect the precious metal to continue its momentum higher as yesterdays US strength was over done.
Oil was little changed yesterday, and will probably stay that way until the next report out of the US, which is due out Wednesday. Everyone is expecting a build-up in reserves as more and more consumers are moving away from driving big cars, and some are switching to bikes. Gold is back on track, mostly on the weakness of the US dollar, we expect the precious metal to continue its momentum higher as yesterdays US strength was over done.