Forex Trading Signal 11/09/07

Tomorrow we are going to have two reports that are worthy watching and possibly trading.

1. Friday, November 9th, 2007 (4:30 a.m. New York Time) UK
At 4:30 a.m. New York time we will have UK Trade Balance coming out. It is expected to come out at -6.9 B. In my opinion if it comes out at -6.4 B or less negative, that may be positive for the pound, and I think GBP/USD may possibly go up by 30 pips or more in the first hour of the report. On the other hand, if the trade balance is -7.4 or more negative, that would probably be negative for the pound, and GBP/USD may possibly go down by 30 pips or more in the first hour of the report. If you are interested in seeing what this indicator did in the previous months, you can go to Forexbastard calendar, and click on a little file box icon, and you will be able to see a history of that indicator for the last few months.

SUMMARY:
* Report: UK Trade Balance
* Buy on GBP/USD if the number will be -6.4 B or less negative
* Sell on GBP/USD if the number will be -7.4 B or more negative
* If the trigger is hit, expect 30 pips or more in the first hour of the report.

2. Friday, November 9th, 2007 (8:30 a.m. New York Time) CANADA
Then at 8:30 a.m. New York time we will have Canadian Trade Balance coming out, and it is expected to come out at 3.9 B. In my opinion if it comes out at 4.5 B 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 3.4 billion or below, we may possibly see EUR/CAD gaining 50 pips or more in the first hour of the report. There is also U.S. trade balance coming out at the same time (which I don't recommend to trade), and that's why I am suggesting to trade EUR/CAD instead of USD/CAD; however, the EUR/CAD may still be affected because of possible trades on EUR/USD on U.S. report but despite of that EUR/CAD would be a better choice for this report.

SUMMARY:
* Report: Canadian trade balance
* Sell on EUR/CAD if the number will be 4.5 B or higher
* Buy on EUR/CAD if the number will be 3.4 B or less
* If the trigger is hit, expect 50 pips or more in the first hour of the report.

3. Friday, November 9th, 2007 (10:00 a.m. New York Time) USA
At 10:00 a.m. New York time we will have U.S. Consumer Sentiment. Recently this report did not have any reliable track record so I will not be trading it. If you have your own trades opened, just be aware of possible strange price actions and possible higher spread near 10.00 a.m.

Well, that's all for Friday.