05.06.14

Good morning,

Australian trade balance results were published for April with a decline reported. This follows the decision earlier in the week to leave the Reserve Bank of Australia’s interest rate unchanged at 2.5% The Aussie dollar is currently trading at 0.9283 against the Greenback. Bank of Japan’s Sato has warned his European counterparts that the euro area may fall into a period of deflation as suffered by Japan, should they continue to lower the inflation expectations in the economic area. EURJPY was trading at 139.47 at time of writing.

The NIKKEI was trading at 15079 up 11.41 points or 0.08%

Today the European Central Bank is expected to lower their interest rate from 0.25% to 0.10% which will have an effect on the trading volumes and the Euro today, regardless of the actual announcement, as traders reposition themselves in line with the confirmation of denial of the expected announcement. EURUSD was trading at 1.3603 at time of writing. Euro Zone Retail Sales figures and the Bank of England revised rate also are out today, but as the BoE is expected to remain unchanged the focus of most people is on the ECB.

The FTSE100 closed at 6818.63 while the DAX closed at 9929.04

Over in the US today we will see the Initial Jobless Claims figures, which are expected to increase to 310K from 300K last time out. EIA Natural Gas Storage results are also due out with NGAS currently trading at 4.666 Tomorrow we will get confirmation of the US Unemployment rate and the Canadian rate also. USDCAD was trading at 1.0940 GOLD fell by 3.3% in May to trade today around $1245 per ounce.

The DOW closed at 16737.53 up 15.19 points or 0.09%

Hope you all have a good day.