The FTSE is indicating a lower opening, as traders are worried that the Bank of England will not help out the sluggish economy, when they meet to decide if an interest rate change is warranted. The BOE is caught between a rock and a hard place having to find the right balance between controlling the spiraling inflation and an economy tittering on the brink of a recession.
Oil bulls really took it on the chin yesterday, as oil prices fell below the previous support level of 109. Earlier reports from the previously evacuated employees of the oil rigs in New Orleans, report that there is very minimal damage if any from Hurricane Gustav. Also helping the oil bears is that Hurricane Hanna is poised to turn north possibly avoiding the oil producing Gulf of Mexico. Gold has been a loser this week as another wave of strength from the US dollar is making the greenback more attractive then the precious metals.
