| The past week had the potential to be explosive. | | | | of the manufacturing industry. Last week, |
| Central bank meetings in the | | | | Wal-Mart and a few other big box retailers announced |
| UK and Europe had traders licking their lips with | | | | that their 'same store'sales were higher, possibly |
| anticipation for thepossible outcomes of the meetings | | | | indicating that consumers are shopping more. Ifthis is |
| and the potential volatility they couldbring. Sadly for | | | | the case then perhaps this could be the stimulus that |
| volatility lovers, the week came and went with | | | | the USpresident was talking about, or maybe it could |
| littlesignificant turbulence. The FTSE ended the week | | | | be explained by consumershitting the shops to spend |
| up almost 150 points. The Dow | | | | their tax refunds. |
| Jones Industrial Average was not so lucky, losing more | | | | Last month the Euro/Dollar hit an all time high near 1.60, |
| than 250 points; mostof it on Friday afternoon, when | | | | since then the Eurohas been in a freefall situation, |
| the world largest insurance company AIGannounced it | | | | giving back more then 5 cents. Someresearch among |
| will be seeking more then 12 billion dollars in new capital. | | | | retail foreign exchange merchants shows that the |
| The new week brings with it a slew of data from UK | | | | Speculative |
| and Europe; the commontheme being inflation. From | | | | Sentiment Index is now showing more of a lean |
| Consumer Price Index to Producers Price Index,traders | | | | towards a weaker Euro. This isthe 3rd week that the |
| will be looking for a number that's on the higher side | | | | SSI has been indicating this. |
| ofexpectations, as oil prices are at an all time high and | | | | With that in mind, the play of the week is as follows: |
| largely to blame forthe inflation run. As it was | | | | We are looking for the |
| mentioned last week in the EU bank speech | | | | Euro to weaken further against the US dollar, or at |
| thataccompanied the rate decision, the main reason | | | | least not test the alltime high levels hit earlier last month. |
| why the decision was taken notto lower interest rates, | | | | A no touch on the Euro/USD maturing |
| was the great concern that doing so would | | | | May 29th 2008, with a strike price of 1.60 could return |
| causeinflation to spiral out of control. On the US side, | | | | 10% ROI. |
| the data will focus moreon retail sales and the health | | | | |