Newsletter 09/11/2007

ASIAN SESSION

A) CALENDAR

-GMT 04:30 JPN Industrial production (m/m), (Sep) EST -1.4% PREVIOUS -1.4%
-GMT 04:30 JPN Industrial production (y/y), (Sep) EST % PREVIOUS 0.8%
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.

-GMT 04:30 JPN Capacity Utilization (Sep) EST PREVIOUS 109.7
Definition
Capacity utilization consists of total industrial output divided by total production capability. The term refers to the maximum level of output a plant can generate under normal business conditions. A normal �figure� for a steady economy is 81.5 percent. If the figure reads 85 percent or more, the data suggests that the industrial production is overheating, that the economy is close to full capacity. High capacity utilization rates precede inflation, and expectation in the foreign exchange market is that the central bank will raise interest rates in order to avoid or fight inflation.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4730 113.35 2.1155
R2 1.4715 113.00 2.1135
R1 1.4700 112.65 2.1115
S1 1.4660 112.30 2.1055
S2 1.4645 112.10 2.0990
S3 1.4625 111.95 2.0975

C) WATCH
-Interest Rates

D) TRADING TIPS
BASIC CANDLESTICKS
Different body/shadow combinations have different meanings. Days in which the difference between the open and close prices is great are called Long Days. Likewise, days in which the difference between the open and small price is small, are called Short Days.
Spinning Tops are days in which the candlesticks have small bodies with upper and lower shadows that are of greater length than that of the body. The body color is relatively unimportant in spinning top candlesticks. These candlesticks are considered as days of indecision

EUROPEAN SESSION

A) CALENDAR

-GMT 09:30 UK Visible Trade balance (Sep) EST -6900M PREVIOUS -6853M
-GMT 09:30 UK Trade non-EU (Sep) EST -3900M PREVIOUS -3902M
-GMT 09:30 UK Total Trade Balance (Sep) EST -4100M PREVIOUS -4107M
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.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4805 113.35 2.1195
R2 1.4755 113.00 2.1155
R1 1.4735 112.80 2.1135
S1 1.4690 112.30 2.1055
S2 1.4665 112.10 2.0990
S3 1.4645 111.95 2.0975

C) WATCH
-Interest Rates
-GMT 09:30 UK Trade Balance

D) TRADING TIPS
BASIC CANDLESTICKS
Different body/shadow combinations have different meanings. Days in which the difference between the open and close prices is great are called Long Days. Likewise, days in which the difference between the open and small price is small, are called Short Days.
Spinning Tops are days in which the candlesticks have small bodies with upper and lower shadows that are of greater length than that of the body. The body color is relatively unimportant in spinning top candlesticks. These candlesticks are considered as days of indecision

US SESSION

A) CALENDAR

-GMT 13:30 USA Import Prices (m/m), (Oct) EST 1.1% PREVIOUS 1.0%
-GMT 13:30 USA Import Prices (y/y), (Oct) EST PREVIOUS 5.2%
Definition
The Import Price Index measures prices American consumers pay for imports. Export Price Index measures prices American producers charge for exports. Every month, the Bureau of Labor Statistics collects net transaction prices for more than 20,000 products from over 6,000 companies and secondary sources. These prices are then weighted according to the relative importance and are not seasonally adjusted. Changes in import and export prices gauge inflation here and abroad. Inflation leads to higher interest rates.

-GMT 13:30 USA International Trade (Sep) EST -58.5$B PREVIOUS -57.6$B
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 15:00 USA U. of Michigan Confidence (P Nov) EST 80.0 PREVIOUS 80.9
Definition
This survey measures the attitudes and expectations concerning both present and future economic conditions of 500 consumers. Just like Consumer Confidence, the
level of consumer sentiment is directly related to the strength of consumer spending. It is almost identical, with two subindexes - expectations and current conditions, but
has two monthly releases, a preliminary and final reading. The consumer expectations portion of the Michigan survey is a component of the leading economic indicators
index. Consumer spending accounts for two-thirds of the economy, so the markets follow any indicator relating to consumer behavior and attitudes. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. It is interesting to note that changes in consumer sentiment and retail sales don’t move in tandem.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4805 112.40 2.1240
R2 1.4780 111.95 2.1195
R1 1.4755 111.50 2.1160
S1 1.4680 110.95 2.1055
S2 1.4665 110.65 2.0990
S3 1.4645 110.50 2.0975

C) WATCH
-Interest Rates
-GMT 13:30 USA International Trade
-GMT 15:00 USA U. of Michigan Confidence

D) TRADING TIPS
BASIC CANDLESTICKS
Different body/shadow combinations have different meanings. Days in which the difference between the open and close prices is great are called Long Days. Likewise, days in which the difference between the open and small price is small, are called Short Days.
Spinning Tops are days in which the candlesticks have small bodies with upper and lower shadows that are of greater length than that of the body. The body color is relatively unimportant in spinning top candlesticks. These candlesticks are considered as days of indecision