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Wednesday, July 23, 2008

BetOnMarkets Morning Update

The FTSE is currently indicating a slightly lower opening, as traders are waiting for the release of the UK retail sales numbers. Recently the health of the consumers has come into question, with falling home prices and higher unemployment figures consumers are stuck between a rock and a hard place. We believe that the number will come in slightly weaker then expected, and result in weakness among the retail sector of the FTSE and a selloff in the GBP/USD.

Commodities suffered again last night, as the US dollar flexed its muscle yet again. Gold which started the week near the 970 level is now trading almost 50 dollars lower, and oil is below the 125 mark. This is all short lived, and we should see oil prices increase in the coming days. Expect oil prices near 130 before the end of the week. Gold, which is used to hedge the US dollar, might not see a return to recent highs for a while, but yesterdays sell off was way overdone, and a bounce back probably above 930 is in the cards