Markets

After large falls over the last 2 trading days, markets have opened slightly higher, but with the UK inflation data out at 9.30 (GMT) look for action in the currency markets. I expect GBP/USD to re-test yesterday's lows, and head towards the 1.62 region. So here are my trading ideas/musings for 18/8/2009

GBP/USD short @ 1.6260 BoE extending gilt purchases beyond the FED treasury purchases, therefore I expect greater downside for cable, especially as stocks lose ground.

London Sugar No. 5 short @ 5.32- This is a fundamentelly driven market, but doesn't mean we can't take advantage of technical gaps like yesterday's fall below the technical level of 549

Crude Oil - Best to play this by ear. I still expect further falls in the price of this contract, but we must respect the strength and depth of this market and show caution on opening up any new shorts at the moment. So for now I am flat but once this contract hits my signals, I fully expect to dive in