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Wednesday, June 11, 2008

Morning Update

The FTSE is currently indicating a flat open, mostly because there are no economic news out today in UK. Most traders will be waiting for the US advanced retail sales before deciding the tone for the trading day. A lot has been said over the last few days about the state of the US consumer, and this will be the first inside look into just how the consumer is doing. There is talk that the number will be weaker then expected, which should hurt the US dollar, especially versus the British Pound. Look for the GBP/USD to touch 1.9750 after the number comes out at 12.30pm GMT.

Gold made a small comeback yesterday after weakness in the US dollar. Lately most commodities have abandoned fundamentals and have been trading based on how the US dollar been doing that day. Oil crept back to above 135 dollars per barrel after US inventories fell another week. This started some concerns that the US stockpiles may be strained during the summer driving season