The FTSE futures are indicating a sharply lower open this morning, as the FTSE is prepared to trade for the first time since the FOMC announcement yesterday. While there was no change in the interest rate, the statement which came out with could have been used for both UK and Europe. Inflation is like the family member nobody likes, it is an embedded part of the economy, and currently its causing havoc around the world. Today traders will spend most of the day trying to position them self ahead of tomorrows UK GDP report and window dressing as we are about to end the 2nd quarter.


Oil fell on the news that US inventories rose for the first time in six weeks. Record high oil prices have forced users to cut back their oil usage. United Arab Emirates helped push oil prices lower when they announced that they will be increasing their output by 200,000 barrels per day next month. Gold joined the commodity losers as the drop in energy prices eased the inflation concern, against which traders use precious metals as a hedge. We are expecting for this to be a very volatile week for gold, with major economic announcements coming up from both sides of the Atlantic.



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