EUROPEAN SESSION
A) CALENDAR
-GMT 08:30 EU Trichet Speaks at European Parliament
-GMT 08:30 UK Total Trade balance (Aug) EST -4M PREVIOUS -4425M
-GMT 08:30 UK Trade non-EU (Aug) EST -4M PREVIOUS -4480M
Definition
Balance of trade figures are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. They form part of the balance of payments, which also includes other transactions such as international investment. The figures are usually split into visible and invisible balance figures. The visible balance represents the physical goods, and invisible represents other forms of trade, e.g. the service economy.
A positive balance of trade is known as a trade surplus and consists of exporting more (in financial capital terms) than one imports. A negative balance of trade is known as a trade deficit and consists of importing more than one exports. Neither is necessarily dangerous in modern economies, although large trade surpluses or trade deficits may sometimes be a sign of other economic problems.
If the balance of trade is positive, then the economy has received more money than it has spent. This may appear to be a good thing but may not always be so.
-GMT 10:00 GER Indus. prod. (m/m), (Aug) EST 0.4% PREVIOUS 0.1%
-GMT 10:00 GER Indus. prod. (y/y), (Aug) EST 3.6% PREVIOUS 4.6%
Definition
Industrial production consists of the total output of a nation’s plants, utilities, and mines. From a fundamental point of view, it is an important economic indicator that reflects the strength of the economy, and by extrapolation, the strength of a specific currency.
B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4100 117.95 2.0440
R2 1.4075 117.65 2.0410
R1 1.4055 117.30 2.0370
S1 1.4005 117.00 2.0330
S2 1.3960 116.60 2.0300
S3 1.3945 116.35 2.0275
C) WATCH
-Interest Rates
-GMT 08:30 UK Total Trade balance
D) TRADING TIPS
Spikes are the hardest market turns to deal with because the spike (or V pattern) happens very quickly with little or no transition period. They usually take place in a market that has gotten so overextended in one direction, that a sudden piece of adverse news causes the market to reverse direction very abruptly.
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