- Markets opened higher this morning, seeming to recover slightly from yesterday’s late sell-off after the Commerce Department reported April inflation was in-line with estimates. Prices Paid data from Chicago PMI was in the higher range, yet markets shrugged off PMI in the aggregate. Crude futures fell below $125 in early trading, providing further good news for equities. In the late morning crude recovered about $127.50 pushing equities lower in tandem. Tech names helped lead markets

Recent development April’s ISM figure was unchanged at 48.6 compared to March. The new orders index remained very weak and the employment index declined considerably, whereas the production index and inventories increased. The regional indices gave off varying signals in May. Philly Fed increased significantly, whereas Kansas declined somewhat. When looking into the details, all local production indices except Chicago declined. The local inventories indices have shown mixed signs; Philly Fed

While growth has been slowing in the developed markets over the last quarters, economic expansion in Russia has, on the contrary, accelerated, driven by buoyant domestic demand. Rising energy prices have led to strong rises in government spending, in recent years and in 2008, and this has caused demand pressures to build up, inflation to rise and imports to soar. Admittedly, the Russian authorities have had virtually no chance of preventing rising world market food prices from pushing up

I think that the last week’s movement was a bullish triangle in the position of wave B and the current rise is wave C. The reached high 105.86 already fulfilled the minimum requirement for the length of wave C but I am still not sure that there will be no more highs because of the corrective retreat from 105.86. A possible resistance level is 107.00 while the support level is 104.10. I prefer to be currently neutral but I will look for an entry level for a short position next week. Trading

BUY  EURUSD @1.5552, SL @1.5537, TP @1.5562 Signal Time:  May 30, 2008 14:48 GMT STATUS: -ON -

This week does have several explosive events. On schedule , we have the central banks’ interest rate decisions, followed by the RBA, the RBNZ, the BoE and the ECB. Furthermore, significant events are also released such as ISM manufacturing index, U.S. factory orders, and Eurozone retail sales, and Canadian unemployment rate and the big nonfarm payrolls.We should keep on paying extra attention to the markets. Alright. Let’s review them all. On Sunday (Jun 1st) Queen’s Birthday in New Zealand.

ECONOMIC DATA ·UK May GFK Consumer Confidence: -29 v -25e ·GE Apr Retail Sales: M/M -1.7% v 0.6%e || Prior revised from -1.9% to -2.2% |||| Y/Y -1.0% v -2.0%e || Prior revised from-6.3% to -6.8% ·FR Apr Producer Prices: M/M 0.7% v 0.6%e || Prior revised from 0.5% to 0.6% |||| Y/Y 5.4% v 5.1%e || Prior revised from 5.2% to 5.3% ·SW Q1 GDP: Q/Q 0.4% v 0.7%e || Prior revised from 0.8% to 0.7% |||| Y/Y 2.2% v 2.7%e || Prior revised from 2.8% to 2.9% ·SW Q1 Current Account [sek]: 81.1B v 80.2B

EURUSD: EUR could be heading for a fourth day of consecutive downside losses having weakened and closed lower Thursday extending its decline off the 1.5817 high(May 27’08 high).While the pair was seen testing the 1.5460 low and trading below the 1.5510 level, its April 03’08 low in early morning today, risk continues to build to the downside suggesting a move further lower targeting the 1.5360/41 area, its May 02’08/Mar 24’08 lows/.382 Ret (1.4438-1.6018 rally) could follow and later its May