The FTSE is currently indicating a flat open, as everyone is waiting for the release of the UK retail sales. Consumers are going through a rough time, with high oil prices and falling home values there is not much left for the customer to tap into to keep up with their spending habits. Sadly the Bank of England has announced that they will tolerate the lower standard of living UK citizens will go through while Mervyn King tries to reign in the number one problem: inflation. A strong Retail Sales number will help the FTSE stocks into positive gains.
Dollar weakness has given new life to the precious metal market, as gold has bounced from the 870 area now trading near the 900 dollar level. While the outlook on the US dollar has not changed, more and more traders are forgetting the threat that Mr. Bernanke made a few weeks back regarding a strong dollar intervention which spooked the FX market.
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