8:30am (NY Time) USA Trade Balance BUY USD/JPY -14.4B SELL USD/JPY -35.4B
8:30am (NY TIme) CAD Trade Balance SELL EUR/CAD 0.1B BUY EUR/CAD -1.3B
Again we have both trade balances coming out at the same time. The object will be to trade one currency pair only, so its either EUR/CAD or USD/JPY. Do not trade both or you might get confused and lose money.
If you are trading the USD/CAD pair, you need to watch out for both news releases and don’t get caught in the middle if they are in conflict. If you are unsure, just skip this trade or observe market movement and test it out with a demo account. You can also trade EUR/CAD to avoid the conflict with USD/CAD.
DEFINITION
Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported over a given period. A rising trend has a positive effect on the nation’s currency. When higher levels of exports are sold to the world, demand for the nation’s currency is elevated as foreigners convert their native currency to purchase the exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production, as domestic factories work to fill this demand.
NOTE: I won’t be trading these news releases since Trade Balances have been more of a disappointment than opportunity. I have provided the parameters that I would be looking for, but trade them at your own risk. As I said, I won’t be wasting time with them, but if you want to watch how the market react to them, consider this as a chance to learn market reaction and maybe take it on a demo account.
Related posts:
- Trade Plan For Canada Employment Change 06/04/10
- Forex Trade Plan & Video For Canada Employment Change 08/06/10
- Forex Trade Plan For Canada Core CPI m/m 09/21/10
- Canada Employment Changes 11/06/09
- Canada Employment Changes m/m 09/04/09
- Canada GDP (Gross Domestic Product) m/m 10/30/09
- Canada Core CPI m/m 09/17/09
- Canada GDP m/m (Gross Domestic Product) 09/30/09
- Canada IVEY PMI Trade Plan For 07/07/10
- Canada Core CPI m/m 08/19/09
