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Sunday, August 10, 2008

BetOnMarkets Morning Update

The FTSE is currently indicating a stronger open, as traders are awaiting the release of the UK Producer Price Index, which is the measure of inflation incurred by the UK manufacturers. The repeating issue for why the BOE is not cutting the interest rates is inflation, and if todays number comes out weaker then expected, an interest cut becomes a possibility again.

Commodities took it on the chin last week, as the US dollar steamrolled all the major currencies. Oil, which was one of the losers, is being propped up mainly due to the tension between Russia and Georgia. While a ceasefire has been announced, there is risk for further gains if talks fail. Gold is being pushed along the same lines, as US is backing Georgia in the conflict, and some worry that it might be forced into another war.