Newsletter 01/10/2007

ASIAN SESSION

A) CALENDAR

-30/09/2007
-GMT 23:50 JPN Tankan-All Industies capex (3Q) EST 7.5% PREVIOUS 7.7%
-GMT 23:50 JPN Tankan Large Manufacturers Index (3Q) EST 21 PREVIOUS 23
-GMT 23:50 JPN Tankan Large Manufacturers Outlook (3Q) EST 20 PREVIOUS 22
-GMT 23:50 JPN Tankan Non-Manufacturing (3Q) EST 21 PREVIOUS 22
-GMT 23:50 JPN Tankan Non-Manufacturing Outlook (3Q) EST 21 PREVIOUS 22
Definition
An economic survey of Japanese business issued by the central Bank of Japan, the survey is conducted to provide an accurate picture of business trends of enterprises in Japan, thereby contributing to the appropriate implementation of monetary policy .The report is released four times a year in April, July, October and mid-December.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4330 115.40 2.0570
R2 1.4305 115.20 2.0540
R1 1.4275 115.05 2.0495
S1 1.4225 114.65 2.0420
S2 1.4200 114.45 2.0385
S3 1.4175 114.05 2.0340

C) WATCH
-Interest Rates

  • (30/09/2007) GMT 23:50 JPN Tankan

D) NEWS

  • USA: ISM Index, ISM Manufacturing (01/10/2007) - Pending Home Sales (02/10/2007) - ISM Non-Manufacturing (03/10/2007) � Employment Report (05/10/2007)
    -EU: Manuf. PMI (01/10/2007) � PPI, Unemployment (02/10/2007) - Serv. PMI, Retail Sales (03/10/2007) � ECB Rate Decision, Trichet Speaks at ECB Monthly News Conference (04/10/2007)
    -UK: Manuf. PMI (01/10/2007) - Serv. PMI (03/10/2007) � BoE Rate Decision (04/10/2007)
    -JAPAN: Tankan (30/09/2007) - Leading indicator (05/10/2007)

E) TRADING TIPS
Head and Shoulders
One of the main requirements of the successful development of this formation is that the breakout through the neckline occurs under heavy market volume. As you know, gauging volume is only possible in the currency futures market. The trader will have to estimate the size of the cash market volume by extrapolating from the currency futures’ volume and the trading “noise”. A breakout on light volume is a strong warning that it is a false breakout and will trigger a sharp backlash in the currency price.

EUROPEAN SESSION

A) CALENDAR

  • GMT 06:30 EU ECB’s Trichet Speaks in St. Julian

-GMT 07:55 GER Manuf. PMI Index (Sep) EST 55.0 PREVIOUS 56.0
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.

-GMT 08:00 EU Manuf. PMI Index (Sep) EST 53.2 PREVIOUS 53.2
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.

-GMT 08:30 UK Manuf. PMI Index (Sep) EST 55.6 PREVIOUS 56.3
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4330 115.40 2.0540
R2 1.4305 115.20 2.0510
R1 1.4275 115.05 2.0475
S1 1.4245 114.65 2.0420
S2 1.4225 114.45 2.0385
S3 1.4200 114.05 2.0340

C) WATCH
-Interest Rates
-GMT 08:00 EU Manuf. PMI Index
-GMT 08:30 UK Manuf. PMI Index

D) NEWS

  • The yen fell to a seven-week low against the euro as a rally in Asian stocks gave traders confidence to resume buying higher-yielding investments funded by loans in Japan.
  • The dollar traded near an all-time low against the euro on speculation a U.S. report today will show factories expanded at the slowest pace in six months.

E) TRADING TIPS
Head and Shoulders
One of the main requirements of the successful development of this formation is that the breakout through the neckline occurs under heavy market volume. As you know, gauging volume is only possible in the currency futures market. The trader will have to estimate the size of the cash market volume by extrapolating from the currency futures’ volume and the trading “noise”. A breakout on light volume is a strong warning that it is a false breakout and will trigger a sharp backlash in the currency price.

US SESSION

A) CALENDAR

-GMT 14:00 USA ISM Index (Sep) EST 62.0 PREVIOUS 63.0
Definition
The Institute for Supply Management (ISM) Index is a composite diffusion index of national manufacturing conditions. Readings above 50 percent indicate an expanding factory sector. The index is calculated from five of the eight sub-components of a monthly survey of purchasing managers at roughly 400 manufacturing firms representing 20 industries and all 50 states. The survey queries purchasing managers about the general direction of production, orders, inventories, employment, vendor deliveries and prices.

-GMT 14:00 USA ISM Manufacturing (Sep) EST 52.5 PREVIOUS 52.9
Definition
A national manufacturing index based on a survey of purchasing executives at roughly 300 industrial companies. Signals expansion when the PMI is above 50 and contraction when below.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4330 116.35 2.0540
R2 1.4305 116.00 2.0495
R1 1.4275 115.80 2.0475
S1 1.4215 115.40 2.0385
S2 1.4200 115.15 2.0355
S3 1.4175 115.00 2.0300

C) WATCH
-Interest Rates
-GMT 14:00 USA ISM Index
-GMT 14:00 USA ISM Manufacturing

D) TRADING TIPS
Head and Shoulders
One of the main requirements of the successful development of this formation is that the breakout through the neckline occurs under heavy market volume. As you know, gauging volume is only possible in the currency futures market. The trader will have to estimate the size of the cash market volume by extrapolating from the currency futures’ volume and the trading “noise”. A breakout on light volume is a strong warning that it is a false breakout and will trigger a sharp backlash in the currency price.