Newsletter 27/09/2007

A) CALENDAR

-GMT 02:10 JPN BOJ Board Member Suda to Speak at Financial Conference

-GMT 04:30 JPN BOJ Board Member Suda to Hold Press Conference

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4180 116.45 2.0245
R2 1.4160 116.00 2.0215
R1 1.4130 115.75 2.0190
S1 1.4105 115.25 2.0145
S2 1.4080 115.05 2.0105
S3 1.4065 114.80 2.0075

C) WATCH
-Interest Rates

D) TRADING TIPS
The importance of trading in the direction of the major trend cannot be overstated. The danger in placing too much importance on oscillators by themselves is the temptation to use divergence as an excuse to initiate trades contrary to the general trend. This action generally proves a costly and painful exercise. The oscillator, as useful as it is, is just one tool among many others and must always be used as an aid, not a substitute, for basic trend analysis.

EUROPEAN SESSION

A) CALENDAR

-GMT 08:00 GER Unemployment (Sep) EST -20k PREVIOUS -15.0k
-GMT 08:00 GER Unemployment (Sep) EST 8.9% PREVIOUS 9.0%
Definition
The percentage of the people classified as unemployed as compared to the total labor force.

-GMT 08:00 EU M3 (y/y), (Aug) EST 11.5% PREVIOUS 11.1%
-GMT 08:00 EU M3 3-month (y/y), (Aug) EST 11.7% PREVIOUS 11.7%
Definition
A category of the money supply that includes M2 in addition to all large time deposits, institutional money-market funds, short-term repurchase agreements and certain other large liquid assets.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4205 116.45 2.0255
R2 1.4180 116.00 2.0215
R1 1.4160 115.75 2.0190
S1 1.4105 115.25 2.0135
S2 1.4080 115.00 2.0105
S3 1.4065 114.80 2.0075

C) WATCH
-Interest Rates
-GMT 08:00 EU M3

D) TRADING TIPS
The importance of trading in the direction of the major trend cannot be overstated. The danger in placing too much importance on oscillators by themselves is the temptation to use divergence as an excuse to initiate trades contrary to the general trend. This action generally proves a costly and painful exercise. The oscillator, as useful as it is, is just one tool among many others and must always be used as an aid, not a substitute, for basic trend analysis.

US SESSION

A) CALENDAR

-GMT 12:30 USA GDP Annualized (q/q), (Q2) EST 3.9% PREVIOUS 4.0%
-GMT 12:30 USA GDP Price Index (q/q), (Q2) EST 2.7% PREVIOUS 2.7%
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.

-GMT 12:30 USA Initial Claims EST 315k PREVIOUS 311k
Definition
New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market. The four-week moving average of new claims smoothes out weekly volatility.

-GMT 14:00 USA New Home Sales (Aug) EST 825k PREVIOUS 870k
Definition
The New Home Sales report shows the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends, and economic momentum signaling consumer purchases of furniture and appliances. Simply, the volume of sales indicates housing demand. Also, the monthly supply of homes serves as an input into the level of housing pressure.
However, when analyzing sales trends, one must remember to take into account unusual weather and seasonal effects.

-GMT 17:00 USA Bernanke Gives Brief Welcoming Remarks at Fed Conference

-GMT 21:30 USA Mishkin Speaks on Globalization at Fed Conference

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4205 116.45 2.0325
R2 1.4180 116.00 2.0270
R1 1.4165 115.75 2.0255
S1 1.4130 115.25 2.0205
S2 1.4115 115.00 2.0180
S3 1.4100 114.80 2.0160

C) WATCH
-Interest Rates
-GMT 12:30 USA GDP
-GMT 14:00 USA New Home Sales

D) TRADING TIPS
The importance of trading in the direction of the major trend cannot be overstated. The danger in placing too much importance on oscillators by themselves is the temptation to use divergence as an excuse to initiate trades contrary to the general trend. This action generally proves a costly and painful exercise. The oscillator, as useful as it is, is just one tool among many others and must always be used as an aid, not a substitute, for basic trend analysis.