InvestMacro Forex News

May 14, 2012

The Easy Way to Invest in Rising Copper Prices

It’s not going to last forever, but copper prices are expected to climb at least until 2015.

Forget about gold and oil prices for the moment…

Instead, you should focus your attention on another commodity that has flat-out outshined them both in recent years in terms of price.

I’m talking about copper. That’s right.

Since May 2009, copper prices have exploded nearly 200% while oil and gold prices have “only” ticked up about 70%.

And this epic run isn’t over yet… not by a long shot.

That’s because, even after falling from its all-time highs earlier this year, demand for copper is still growing over four times the rate it’s being produced…

The Copper Crunch

Today, copper is used in everything from construction to electronics to transportation to manufacturing and more.

In fact, many experts refer to it as “Dr. Copper,” stating it has a Ph.D. in economics, as it oftentimes can gauge the overall state of the global economy.

Most recently though, there were two main reasons why copper prices backed off from their record highs:

Inventory: As you can see below, copper inventories (much of it China’s) have flooded the markets since mid-September 2011…

1 Year LME Copper Warehouse Stocks Level

China: China accounts for just about 40% of world copper demand. In the first three months of 2012, its economy grew at its slowest pace in nearly three years. Less industry in China means less demand for copper. So copper prices slid lower.

But like I said, this dip is only temporary.

To see why, we’ll need to take a closer look at the supply side of copper.

Remember… It’s All About Supply and Demand

According to CRU Group, the copper market deficit will hit 500,000 metric tons in 2012.

Yet this shortage isn’t coming because of increasing demand. It’s happening because there just isn’t enough copper to go around.

The world’s top four listed global copper miners – Freeport McMoRan (NYSE: FCX), BHP Billiton (NYSE: BHP), Xstrata (LSE: XTA) and Rio Tinto (NYSE: RIO) – saw their copper outputs drop recently between 10% and 18%.

Just to keep up with current contracts, Codelco, the world’s leading copper miner, was forced to buy copper from an outside source earlier this year. What’s more, the copper mining industry has undershot production expectations by an annual average of 5% over the past seven years.

I wouldn’t be surprised to see this trend continue, especially as more and more good economic news comes out of the United States.

How to Play the Copper Supply Shortage

It’s not going to last forever, but copper prices are expected to climb at least until 2015. That’s when analysts say there will be enough new mines in production to match demand.

Until then, one of the easiest ways to invest in this price increase is through iPath Dow Jones UBS Copper Total Return Sub-Index ETN (NYSE: JJC), which tracks the price of copper futures on the COMEX.

Just be sure to always use trailing stops and never put more than 1% of your total portfolio into any stock investment.

Good Investing,

Mike Kapsch

Article by Investment U

May 14, 2012

Unending Euro woes

By TraderVox.com

Tradervox (Dublin) – The Euro is experiencing a huge sell off in opening trades of the week. The EUR/USD pair is on a strong bearish rally with new bearish positions building up. The trend is hugely in favor of the bears and this is adding up the bearish volatility numbers in the EUR/USD trade. The currency pair has been able to break the strong psychological support at the 1.29 level to fall further. This has added fuel to the market sentiment of shorting EUR/USD sending the pair to near 1.283 levels.

On the one hour chart the pair is trading well below the 20 day and 10 day moving average with a huge bearish divergence indicating a stronger bearish run is waiting. The RSI is well past the oversold levels, but this has not deterred the EUR/USD bears which continue to surge supported by the bearish momentum and the strong downwards price action.

On the fundamental side things are not so rosy in the Euro zone. The weekend saw the Greek president call all parties to form the coalition government. The pro austerity parties failed to meet substantial numbers after a number of small parties under the banner of the anti bail out Syriza party declined to join the collation government. If the parties fail to reach an agreement another election could be seen soon, which has a high probability of bringing the Syriza party to power. This has raised an uncertainty cloud over Greece, raising fears that the country may soon run out of funds and may eventually end up bankrupt. Financial markets have already began to price in a possibility of a Greek exit sending the European stocks plunging and sparking a move away from Euro denominated assets to safe haven dollar, US treasuries and German Bunds. This has led to a sharp rise in the bond yields of Spain and Italy.

In other events the euro zone industrial production contracted by 0.3 % while markets expected a revival in the production capacity by 0.4%. This was a further blow to the weak EUR/USD. Now the Euro zone seems to be stuck in spiral of deep recession, unending debt and fears of possible exit by member countries.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
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May 14, 2012

Charles Sizemore on Wealth Wake Up Radio

By The Sizemore Letter

Listen to Charles Sizemore discuss the implications of the ”London Whale” trading error that cost JP Morgan $2 billion, the state of the European debt crisis and the outlook for Canada with Dick Donahue on Wealth Wake Up radio.

To listen, click here.

Dick Donahue is the manager and owner of Asset Advisors, LLC and the host of KGMI talk radio’s popular weekend program: Wealth Wake Up with Dick Donahue.

May 14, 2012

Gold & Gold Miners Are Closing in on a Major Bottom

By jw jones, Traders Video Playbook

“You can’t understand what lays ahead if you don’t understand the past”

~ Satellite, Rise Against ~

Members of my service as well as long time readers know that I do a lot of analysis based on the past. I am constantly looking at long-term historical price charts and data. As a trader, I am always looking for an edge.

Obviously the keys to long-term success involve proper position sizing, risk management mechanisms, and ultimately leveraging probability. Professional traders are masters of these tenets. These characteristics are what separate successful traders from average traders over the long haul.

Sometimes through my rigorous analysis I come across price charts and oscillators that help put together a picture that helps shape my view of the marketplace. The past few months have been some of the most difficult market conditions that I have seen in some time.

The “wall of worries” permeates the financial landscape as risk at present seems unprecedented. The list of macroeconomic concerns ranges from the European sovereign debt crisis to escalation of military action in the Middle East.

I could probably write an entire article about the various risks that plague global financial markets at present, but I try to focus on the positive in any situation. Right now remaining optimistic is a daily battle amid the constant barrage of depressed economic data. Instead of focusing on all of the various risks, I focus on finding opportunities where probabilities are favorable based primarily on historical price data, cycle analysis, and tape reading.

Back on April 9th I proffered an article that discussed my expectation that the U.S. Dollar Index would rally while risk assets such as equities and oil prices would collapse. Additionally I commented on my expectations for weakness in gold, silver, and the entire mining complex. I was wrong about the timing of the U.S. Dollar’s advance, but the ultimate price action analysis was correct.

The following quote came from that article, “As shown above, I believe that short term targets to the downside are likely somewhere in the 1,475 – 1,525 price range. I think gold will find a major bottom near these levels and a strong bounce will play out.” (Click here to view the entire article)

When I originally wrote that article referring to a decline in gold prices gold futures were trading around 1,630 an ounce. Price rallied sharply higher after my article went public, but fast forward to today and my concerns appear to be well founded. I am a long-term gold bull and I ultimately believe that new highs will occur in the future. However, gold and gold miner’s may have further to fall before they find major support.

As stated above, my original expectations for the Dollar Index did not happen in the time frame I was anticipating. However, the belief that a rally was forthcoming proved to be accurate as can be seen from the price chart of the U.S. Dollar Index shown below.

U.S. Dollar Index Daily Chart

Traders Video Analysis Chart

As can be seen above, the price action is confirming serious strength. The weekly close on Friday saw the Dollar close above a key short-term resistance level. Additionally I would point out the double bottom that has been carved out on the chart above which is also bullish. Should resistance near 80.76 give way to higher prices a test of the recent highs is quite possible.

The technical picture suggests higher prices in the near term for the greenback. From a fundamental viewpoint, recent economic data also suggests that higher prices may await as one the largest weekly debt issuance of 2012 among sovereigns within the Eurozone will transpire next week. If any of the debt auctions go poorly it will reflect negatively on the Euro currency and help push the Dollar higher.

Most of the debt issuance is outside of the 3 year maturity window so the LTRO justification to encumber risk does not apply. Next week we will find out just how serious investors are about accepting default risk on European debt instruments. I would be shocked if the ECB sits idly by, but the sheer amount of capital required to safeguard debt issuance next week is extreme, even for a major central bank.

The Euro currency continues to fall and has broken key resistance around the 1.30 price level on the EUR/USD currency pair. Price is not collapsing as of yet, but we are seeing a slow and steady slog lower for the Euro. This price action serves to boost the Dollar which ultimately places downward pressure on risk assets such as equities and oil. Additionally, it reduces the valuation of gold. The daily chart of gold futures is shown below.

Gold Futures Daily Chart

Gold Trading Video Chart

The recent price action in gold has been quite ugly and price is resting at key support stemming from an intermediate-term descending channel shown above. Should the lower bound break to the downside a sharp move lower could play out.

It is important to remember that gold is coming off a monster multi-year bull run and it only serves to make sense that a nasty pullback that shakes out the bulls would be forthcoming. I continue to believe that strong support and buyers will come back into gold around the 1,450 – 1,550 price range as significant long-term support levels should hold up prices. The key support zone is clearly illustrated in the chart above.

I continue to wait for price to reach that key support level and based on the current proximity those support levels are magnetizing price toward them. When long-term support / resistance levels are near price a test is a common occurrence. The most important question to ask is whether the support zone shown above will hold, or will even lower prices ultimately play out?

Gold and silver both are starting to become oversold on the daily time frame. While the gold bugs have been feeling pain the past few weeks, the gold miners have been taken out back to the woodshed for a good whipping. The miners have been absolutely crushed in 2012 .

My long term analysis revealed something quite extraordinary on the longer term weekly chart of the HUI gold mining index which I believe is critical for readers to watch and monitor. We are nearing valuation levels based on the true strength index that have not been seen since the market crash that took place back in 2008. The weekly chart of the gold bugs index is shown below.

Gold Bugs Index Weekly Chart

Gold HUI Trading Video Chart

As can be seen above, the Gold Bugs Index (HUI) has been under considerable selling pressure since early September of 2011. However, note how low the True Strength Index is based on 5 years of price data. We are nearing the same level that we saw back in 2008 which marked a major bottom that ultimately resulted in a monster move to the upside for the gold miners.

I am of the opinion that this chart demonstrates quite clearly that a great buying opportunity for gold, silver, and the miners is likely going to present itself in the near future. I will be watching this price relationship over the next few weeks waiting for a strong entry point for a longer-term purchase. After this pullback concludes, the potential returns that could occur in gold, silver, and the miners could be breathtaking.

With 3 clear support levels, a defined risk approach could be used in order to scale in or to reduce market risk should prices continue to move below each support level. While the time is not right just yet, more than likely a solid long-term risk / reward trade may very well present itself in the precious metals and mining space. I am likely a bit early, but the ultimate end game as it relates to fiat currency is documented throughout history. The final result has a finality that few truly comprehend.

If you enjoyed this article and analysis, you can get our detailed trading analysis videos every Sunday, Monday, Wednesday and Thursday here risk free: http://tradersvideoplaybook.com/risk-free-30-day-trial/

Happy Trading and Investing!

This material should not be considered investment advice. J.W. Jones is not a registered investment advisor. Under no circumstances should any content from this article or the OptionsTradingSignals.com website be used or interpreted as a recommendation to buy or sell any type of security or commodity contract. This material is not a solicitation for a trading approach to financial markets. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This information is for educational purposes only.

May 14, 2012

Bull Market in Gold “Not Over” But Speculators Turn Bearish as Greek Insolvency Looms

London Gold Market Report
from Adrian Ash
BullionVault
Mon 14 May, 08:20 EST

THE PRICE OF GOLD and gold futures dropped yet again Monday morning, recording the seventh drop in nine trading days in May so far as industrial commodities, global stock markets and the Euro currency all sank amid Athens’ failure to negotiate a new coalition government.

Silver bullion also fell hard, touching $28.44 per ounce and losing 8.9% from the start of this month.

The price of Spanish government debt today fell yet again, pushing 10-year yields above 6.2% ahead of an auction of new bonds later today.

Greek public-sector salaries and state pensions may be unpayable “from the beginning of June” says a letter from stand-in prime minister Lukas Papadimos to party leaders, republished by Ta Nea, after May’s tranche of the international bail-out was cut and tax revenues came in below target.

“We do not think the gold bull market is over,” says a note from Morgan Stanley analysts, even though “gold has moved lower and is trading at levels not seen since December 2011.”

Viewed on a technical chart analysis, “Damage has certainly been done [but] we do not think it is irreversible,” they add, pointing to a sharp rise in speculative “short selling” by gold futures traders now expecting prices to fall further.

“The last time positioning was at these levels, prices embarked on a move higher, rallying to near $1800 per ounce. We are buyers of gold here.”

The rise in speculative short-selling of gold futures is “disconcerting” however, says Marc Ground at Standard Bank, because “while investors have over the past few weeks appeared cautious of running too short on gold, this fear seems to have evaporated.”

Over in the currency markets – where the Euro fell to new 4-month lows vs. the Dollar at $1.2860 – “We continue to target $1.20 for Euro/Dollar,” says Ground’s colleague, currency strategist Steve Barrow.

“Whether this takes time, or comes in an instant, could depend on the outcome of Greece’s political impasse.”

Energy, metal and food prices all sank once more Monday morning as European stock markets lost more than 2% of their value, with Madrid losing 3% and Athens dropping 5.3%.

At the weekend Swedish central banker Per Jansson said that “of course the question [of a Greek exit] is discussed.” Irish central bank chief, and fellow European Central Bank policymaker Patrick Honohan told journalists that “technically, it can be managed.”

“We wish it to be possible for Greece to remain in the euro but Greece must live up to its commitments,” a spokeswoman for the European Commission said Monday morning.

If Greece breaches the agreed terms of its bail-out deal then staying in the Euro would be “an impossible equation and I think in that sense it is an irresponsible statement,” said Finland’s Europe minister Alexander Stubb today about the ongoing calls for an end to cuts in Athens.

German chancellor Angela Merkel meantime suffered a drubbing in a state election on Sunday, with her Christian Democratic Union drawing only 26% of the vote in North Rhine-Westphalia, giving the coalition of Social Democrats and Greens a winning majority of 50%.

Price inflation in Germany’s wholesale markets rose sharply in April, new data showed today, while industrial production across the 17-nation Eurozone fell much harder than forecast, down 2.2% year on year.

On the FX market, the Euro today hit fresh 42-month lows vs. the British Pound, but fell less quickly than gold futures or bullion, with the gold price for Eurozone buyers slipping beneath €39,100 per kilo for the first time this year.

For Indian buyers, “The weakness of the Rupee is countering the fall in the Dollar gold price,” says Jeffrey Rhodes, global head of precious metals at INTL Commodities DMCC in Dubai, speaking to the Wall Street Journal.

“That’s likely to act as a drag on demand in the world’s biggest market.”

“There is hardly any work these days,” complains a Jaipur goldsmith to The Times of India. “First the 21-day long jewelers’ strike and now the increasing gold prices have rendered us jobless.

“It is getting tough for us to survive.”

India’s imports of gold bullion fell by two-thirds last month compared with April 2011.

Gold futures on the Multi Commodity Exchange in Mumbai today slipped back to a 5-week low, down 3.3% from early May’s new all-time highs.

Adrian Ash
BullionVault

Gold price chart, no delay | Buy gold online at live prices

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

May 14, 2012

ForexCT’s Afternoon Market Thoughts for 14 May 2012

Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

May 14, 2012

Risk Aversion Continues to Weigh on Higher-Yielding Currencies

Source: ForexYard

Following multiple failures by Greek politicians to form a new government, investors are now concerned about what impact a possible new election will have on Greece’s status in the euro-zone. The news weighed down on riskier currencies, particularly the euro, throughout Friday’s trading session. The EUR/USD dropped to a fresh 3 ½ month low at 1.2903 before staging a slight correction to close out the week at 1.2917. Turning to this week, euro-zone news is once again forecasted to dictate the direction the market takes. Any additional negative announcements out of Greece could drive the euro even lower against its main currency rivals.

Economic News

USD – US Consumer Sentiment Gives Dollar a Boost vs. JPY

News that consumer sentiment in the US reached a more than four-year high gave the dollar a slight boost against several of its main rivals on Friday, including the Japanese yen. The USD/JPY was up close to 30 pips for the day, but was unable to break the psychologically significant 80.00 resistance level. Additionally, risk aversion in the marketplace helped the safe-haven dollar make substantial gains against the British pound throughout Friday’s session. The GBP/USD fell over 75 pips over the course of the day to close out the week at 1.6067.

Turning to this week, a batch of potentially significant data out of the US is forecasted to generate volatility in the marketplace. Traders will want to pay attention to Tuesday’s Retail Sales and Core Retail Sales reports. With both forecasted to come in below last month’s figures, the dollar may take losses against the yen as a result. Additionally, Wednesday’s FOMC Meeting Minutes could provide investors with clues as to any steps the Fed is considering taking to generate momentum in the US economic recovery. Any indication that a new round of quantitative easing is on its way could lead to heavy dollar losses against its safe-haven rivals.

EUR – Euro Continues to Fall amid Greece Worries

The prospect of fresh elections in Greece combined with news that a leading US bank suffered a $2 billion loss due to a poor trading strategy, caused investors to shun riskier assets to close out last week’s trading session. The euro took heavy losses as a result of the news, falling to a 3 ½ month low against the US dollar during early morning trading. That being said, the common currency was able to stage a recovery against the British pound, after dropping as low as 0.7995 during Asian trading. The EUR/GBP eventually closed out the week at 0.8037.

Turning to this week, traders will want to focus their attention on any announcements out of the euro-zone. With the prospect of Greece exiting the euro-zone turning more and more into a real possibility, the markets could see significant movement in the coming days. Traders will also want to note the results of several US economic indicators, scheduled to be released throughout the week. Should any of the news point to a further slowdown in the US economic recovery, investors may continue to shift their funds to safe-haven assets which could negatively impact the euro.

AUD – Aussie Resumes Bearishness Following Brief Gains

The Australian dollar saw brief gains during European trading on Friday before resuming its bearish trend against the safe-haven US dollar and Japanese yen. The AUD/USD was up over 50 pips in mid-day trading, reaching as high as 1.0076 before erasing its gains during the second half of the day. The pair eventually closed out the week at 1.0019. Against the yen, the AUD traded as high as 80.55 before staging a downward correction to finish Friday’s session at 80.08.

This week, AUD movement is likely to come as a result of news out of the euro-zone. In addition to the political uncertainty in Greece, analysts are also concerned about how the current crisis is going to affect already fragile economies in countries like Spain and Italy. Any signs that economic and political turmoil will spread to other countries in the region could result in heavy losses for riskier currencies like the aussie.

Crude Oil – Negative International News Leads to Drop for Crude Oil

The price of crude oil fell once again on Friday as the combination of negative news out of the US, euro-zone and China caused investors to abandon riskier assets. Following a brief spike during mid-day trading in which crude reached as high as $97.15 a barrel, the commodity resumed its bearish trend, eventually dropping to $95.60 to close out the week.

This week, crude traders will want to pay attention to a batch of US news, specifically Tuesday’s retail sales reports and Wednesday’s FOMC Meeting Minutes. Should any of the news point to a further slow-down in the US economic recovery, oil could continue falling as a result. In addition, any more political turmoil in the euro-zone may lead to risk aversion in the marketplace in which case commodities like oil could drop further.

Technical News

EUR/USD

The weekly chart’s Williams Percent Range has dropped into oversold territory, indicating that this pair could see upward movement in the coming days. This theory is supported by a bullish cross on the daily chart’s Slow Stochastic. Opening long positions may be a wise choice for this pair.

GBP/USD

The Bollinger Bands on the daily chart are narrowing, indicating that this pair could see a major shift in price in the near future. That being said, most other long term technical indicators are not providing clear signs as to what direction the shift will be. Taking a wait and see approach may be the best choice for this pair.

USD/JPY

A bullish cross on the weekly chart’s Slow Stochastic points to a possible upward correction in the coming days. This theory is supported by a bullish cross on the daily chart’s MACD/OsMA. This may be a good time for traders to open long positions.

USD/CHF

The Relative Strength Index on the daily chart is approaching the overbought zone, indicating that this pair could see downward movement in the near future. Additionally, the Williams Percent Range on the weekly chart has crossed above the -20 line. Traders may want to go short in their positions ahead of a possible bearish correction.

The Wild Card

USD/NOK

A bearish cross on the daily chart’s Slow Stochastic indicates that this pair could see downward movement in the near future. Furthermore, the Williams Percent Range on the same chart is in overbought territory. This may be a good time for forex traders to open short positions ahead of a possible downward breach.

Forex Market Analysis provided by ForexYard.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

May 14, 2012

Central Bank News Link List – 13 May 2012

By Central Bank News
Here's today's Central Bank News link list, click through if you missed the previous central bank news link list. Remember, if you want to submit links for inclusion in the daily link list, just email them through to us or post them in the comments section below.

Monetary Policy Week in Review (Central Bank News)
The week ahead in central banking (Financial Times)
PBOC Drops RRR by 50bps (Central Bank News)
Bundesbank's Weidmann tells Hollande not to touch fiscal pact (AFP)
ECB's Honohan says Greek exit manageable (Bloomberg)
BOJ's Shirakawa warns against reckless JGB buying (Reuters)
BoE inflation report due out this week (my finances)
Banks prepare for the return of the Drachma (Reuters)
IMF commends Spain on measures to strengthen banking sector (IMF)

Source: www.CentralBankNews.info

May 14, 2012

Market Review 14.5.12

Source: ForexYard

The euro fell to a four-month low against the USD in overnight trading following news that Greek politicians have once again failed to form a new government. Investors are concerned about the possibility of Greece exiting the euro-zone. Risk aversion in the marketplace also caused the AUD/USD to drop below 1.0000 in morning trading.

Main News for Today

EUR Industrial Production 09:00 GMT
• Forecasted to come in below last month’s figure
• The news could result in further losses for the euro against the USD and JPY
Italian 10-Year Bond Auction
• No definitive time set for the bond auction
• Should demand for Italian bonds be low, the euro is likely to drop further as a result

Forex Market Analysis provided by ForexYard.

May 14, 2012

Major Events This Week

By TraderVox.com

Tradervox (Dublin) – The US dollar and the yen have had a great week riding on the fears in the Euro-zone. The euro-zone concerns are expected to continue through this week and the market will be treated to a week with numerous major events.

Monday 14

The market will receive report from Australian Bureau of Statistics showing the Home Loans data for the country. A high reading is regarded as bullish for the economy which is good for consumer confidence. This report will be released at 0130hrs GMT and it’s expected to show -2.0 percent from -2.5 percent registered previously. Another report expected to affect the market, is the Germany Wholesale Price Index expected to be released at 0600hrs GMT.

Tuesday 15

Euro-Zone GDP data is expected to be released on Tuesday with France releasing at 0530hrs GMT and Germany at 0600hrs GMT. The whole of euro-area GDP will be released at 0900hrs GMT. The euro-zone GDP data is expected to show that the region is entering into an early recession as a second consecutive contraction in the economy is expected. Spain and Italy are already in recession while Germany is expected to escape it with a very slight margin.

Wednesday 16

At 1230hrs, US building Permits report will be released by the housing department. The market expects a further increase to 730,000 units. Another report is the US FOMC Meeting Minutes report which will be released at 1800hrs which is expected to show the direction in QE3 efforts.

Thursday 17

US Unemployment Claims report will be released at 1230hrs GMT. The jobless claims filed last week declined to 367,000 but the market is expecting an increase this week to 371,000. The US Philly Fed Manufacturing Index will be released at 1400hrs and an increase to 10.6 is forecasted.

Friday 18

The G8 Meeting will start on Friday and end on Saturday 19. The G8 Summit will be hosted by US President Barrack Obama at Camp David. The G8 members include France, Canada, Germany, Japan, Italy, Russia, US, and UK.