Trading Signals and News Update For Monday

Let's now talk what is going on on Monday and Tuesday.

1. Monday, September 10th, 2007 (4:30 a.m. New York Time) UK
Than on Monday at 4:30 a.m. we have UK PPI coming out. This indicator could cause a move, especially that timing is very important for this indicator. Inflation is important in the UK. The PPI output number could be a little bit more important; however, if the PPI input deviates by a lot, that could also cause some moves. I will not give any specific instructions on how to trade this one because it will largely depends on the conflict between the two in the actual readings as well as the price action right before the report. If you are inexperienced, just skip this indicator.

2. Tuesday, September 11th, 2007 (4:30 a.m. New York Time) UK
On Tuesday at 4:30 a.m. we have UK trade balance coming out of the UK. In my opinion, this one is a little bit more predictable. It is expected to come out at about -6.4 billion. I think if it comes out at -7 billion or more negative, we may possibly see GBP/USD going down by 35 pips or more in the first hour of the report. On the other hand, if the trade balance comes out at -6 billion or less negative, we may possibly see GBP/USD going up by 35 pips or more in the first hour of the report. I would just try to miss the spike, and try to get in within 5 to 10 pips of the pre-release price, and see if 20 pips can be squeezed out of this one.

SUMMARY:
* Report: UK Trade Balance
* Sell on GBP/USD if the number will be -7B or more negative
* Buy on GBP/USD if the number will be -6B or less negative
* If the trigger is hit, expect 35 pips or more in the first hour of the report.

3. Tuesday, September 11th, 2007 (8:15 a.m. New York Time) CANADA
Then at 8:15 a.m. New York time, on Tuesday, we have Canadian housing starts coming out. Usually, I don't trade this indicator because it hardly ever deviates but we have seen a decent deviation on the house number in Canada this week, and it moved the Canadian dollar significantly because housing is a hot topic. It is expected to come out at 220,000. If it comes out at 250,000 or higher, I think USD/CAD could possibly go down by 30 pips or more in the first 15 minutes of the report. On the other hand, if the housing comes out at 190,000 or below, that would be a low reading, and I think USD/CAD may possibly gain 30 pips or more in the first 15 minutes of the report. I say 15 minutes because 15 minutes later at 8:30 a.m. we will have U.S. trade balance and Canadian trade balance coming out.

SUMMARY:
* Report: Canadian housing starts
* Sell on USD/CAD if the number will be 250K or higher
* Buy on USD/CAD if the number will be 190K or less
* If the trigger is hit, expect 30 pips or more in the first 15 minutes of the report.

4. Tuesday, September 11th, 2007 (8:30 a.m. New York Time) CANADA
At 8:30 a.m. we have Canadian trade balance coming out. It is expected to come out at approximately 5 billion or so. In my opinion, if it comes out at 5.4 billion or higher, we may possibly see EUR/CAD going down by 50 pips or more in the first hour of the report. On the other hand, if the trade balance comes out at 4.5 billion or below, we may possibly see EUR/CAD gaining 50 pips or more in the first hour of the report. One of the reasons for this set of triggers is first of all a reading of 4.5 billion would be the lowest reading this year, and a reading of 5.4 billion would be higher reading than last month which would be a pleasant surprise. There is also U.S. trade balance coming out, and that why I am suggesting to trade EUR/CAD; however, the EUR/CAD will still be affected because of EUR/USD pair but anyway EUR/CAD would be better choice for this report.

SUMMARY:
* Report: Canadian trade balance
* Sell on EUR/CAD if the number will be 5.4B or higher
* Buy on EUR/CAD if the number will be 4.5B or less
* If the trigger is hit, expect 50 pips or more in the first hour of the report.

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