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Wednesday, August 20, 2008

BetOnMarkets Morning Report

The FTSE is currently indicating a lower opening as traders await the release of the UK retail sales numbers. While economists are expecting a contraction of 0.2%, traders are hedging in case the numbers come out worse then expected. Should this happen, the FTSE could open 1% lower.

Gold is in recovery mode as the strength of the US dollar wanes. Gold is now trading above the 820 dollar per ounce mark, and is poised to go higher. Oil had a very interesting day; after bearish inventory data, which saw crude oil fall below the 114 dollar mark, the black gold recovered and coupled with the weakness of the US equities market, finished the day above the 116 dollar per barrel mark. We expect oil to follow the US dollar, if the dollar weakens then look for oil to test 120 dollar level.