BetOnMarkets Morning Update - 09/07/08 (go back »)

The FTSE is currently indicating a sharply higher open, as traders are anticipating better then expected trade balance figures due out at 8.30am GMT. While there have been a lot of rumours that the UK economy is teetering on the brink of a recessions, a healthy trade balance will dispel those rumours, and help the FTSE after yesterdays massive selloff.  Most traders are preparing for the BOE interest rate decision on Thursday morning. We believe that there will be no rate hike, and there is actually a slight possibility for a rate cut after the abysmal manufacturing and production numbers early this week.

Oil has been on a victim of profit taking and a strong US dollar, falling more then 9 dollars since hitting 145.85 per barrel on July 3rd. While this is most welcomed by everyone other then the oil producers, the cheap prices are short lived, as consumers and corporations will take advantage to buy oil at these low prices for future use. Gold has been a lower for the last 4 days, and it does not look like it will change today. Lower oil prices and a strong dollar has traders selling the precious metal, which is used to hedge against inflation and weakness in the US dollar.

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