NEWSLETTER ASIAN SESSION 25/04/2007
Date: Tuesday, April 24 @ 19:42:11 GMT
Topic: Forex Daily Forecast
A) CALENDAR
-24/04/2007
-GMT 23:50 JPN Trade balance (Yen), (Mar) EST 1444.3B PREVIOUS 976.7B
-GMT 23:50 JPN Adjusted Trade Balance (Yen), (Mar) EST 1036.5B PREVIOUS 655.1B
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 1.3695 119.20 2.0070
R2 1.3670 118.95 2.0045
R1 1.3640 118.70 2.0025
S1 1.3610 118.25 1.9975
S2 1.3590 117.95 1.9955
S3 1.3575 117.60 1.9930
C) WATCH
-Interest Rates
- (24/04/2007) GMT 23:50 JPN Trade balance
D) NEWS
-The dollar dropped to within a cent of a record low against the euro as evidence of a U.S. economic slowdown increased the likelihood of a cut in borrowing costs by the Federal Reserve in the third quarter.
The U.S. currency weakened the most against the euro in more than a week as existing-home sales in March dropped more than economists forecast to the lowest in almost four years.
-The U.S. currency declined as existing home sales fell 8.4 percent in March after a revised 3.7 percent gain the previous month, the National Association of Realtors reported in Washington.
Consumer confidence in the U.S. dropped in April to the lowest in eight months on concern over rising gasoline prices and a wave of mortgage defaults. The New York-based Conference Board's index of consumer confidence fell to 104.0 from 108.2 in March. The index averaged 105.9 last year.
E) TRADING TIPS
A stop is not a perfect tool but it is the best defensive tool we have.
(Alexander Elder)
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