Newsletter 26/09/2007

Trading Discussion News and Economy
1

ASIAN SESSION
A) CALENDAR

-25/09/2007
-GMT 23:50 JPN Trade balance (Yen), (Aug) EST 230.0B PREVIOUS 666.5B
-GMT 23:50 JPN Adjusted Trade Balance (Yen), (Aug) EST 739.5B PREVIOUS 822.6B
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.

-26/09/2007
-GMT 06:00 GER GFK (Oct) EST 7.0 PREVIOUS 7.6
Definition
This index is based on the following question to consumers: �How do you think the general economic situation will develop in the next 12 months?� (improve � stagnate � deteriorate). About 2000 interviews are conducted each month.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4200 115.40 2.0275
R2 1.4170 115.15 2.0245
R1 1.4150 114.95 2.0210
S1 1.4115 114.60 2.0165
S2 1.4095 114.40 2.0145
S3 1.4080 114.20 2.0105

C) WATCH
-Interest Rates

  • (25/09/2007) GMT 23:50 JPN Trade balance

D) TRADING TIPS
The bar chart is arguably the most popular type of chart currently in
use. It consists of three significant points:
� The high and low prices, which are united by a vertical line
� The opening price, which is marked with a little horizontal line to the left of the bar
� The closing price, which is marked with a little horizontal line to the right of the bar.
The opening price is not always important for analysis.
Bar charts have the obvious advantage of displaying the currency range for the period selected.

2

EUROPEAN SESSION

A) CALENDAR

-GMT 08:30 UK Current Account (Q2) EST -11.5B PREVIOUS -12.2B
Definition
Balance of trade plus NET investment income & transfers. The difference between what the country earns and spends overseas. The �current account� more specifically deals with the daily recurring transactions in the ordinary course of business. It involves international receipts & payments including trading receipts & payments, service receipts & payments and unilateral transfers such as payment of royalties, repatriation of after-tax profits & dividends, remittance of after-tax wages & other income by foreign employees and any payment of interest on foreign debts.

-GMT 08:30 UK GDP (Q2) EST 0.8% PREVIOUS 0.8%
-GMT 08:30 UK GDP (Q2) EST 3.0% PREVIOUS 3.0%
Definition
Gross Domestic Product (GDP) is the total value of final goods and services produced within a country’s borders in a year. It is one of the measures of national income and output. It may be used as one indicator of the standard of living in a country, but there may be limitations with this view.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4210 115.40 2.0275
R2 1.4190 115.15 2.0245
R1 1.4160 114.95 2.0215
S1 1.4115 114.60 2.0145
S2 1.4100 114.40 2.0105
S3 1.4080 114.20 2.0080

C) WATCH
-Interest Rates
-GMT 08:30 UK Current Account
-GMT 08:30 UK GDP

D) TRADING TIPS
The bar chart is arguably the most popular type of chart currently in
use. It consists of three significant points:
� The high and low prices, which are united by a vertical line
� The opening price, which is marked with a little horizontal line to the left of the bar
� The closing price, which is marked with a little horizontal line to the right of the bar.
The opening price is not always important for analysis.
Bar charts have the obvious advantage of displaying the currency range for the period selected.