Message-ID: <5658733.1075858803768.JavaMail.evans@thyme> Date: Mon, 22 Oct 2001 16:17:31 -0700 (PDT) From: info@forexnews.com To: sara.shackleton@enron.com Subject: Japanese Preview Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: <info@forexnews.com>@ENRON X-To: Shackleton, Sara </O=ENRON/OU=NA/CN=RECIPIENTS/CN=SSHACKL> X-cc: X-bcc: X-Folder: \SSHACKL (Non-Privileged)\Shackleton, Sara\Deleted Items X-Origin: Shackleton-S X-FileName: SSHACKL (Non-Privileged).pst [IMAGE] Forums Discuss these points in the Forums: Forexnews Forum T= echnicals Live Charts Analysis available from: Cornelius Luca J.P. Chorek= Technical Research Ltd. Charts & News featuring Standard & Poor's = Interest Rates US: Japan: Eurozone: UK: Switzerland: 2.5% 0.15% 3.7= 5% 4.5% 1.75-2.75% [IMAGE] =09 [IMAGE] Japanese Forex Trading Prev= iew October 22, 7:00 PM: EUR/$..0.8914 $/JPY..122.36 GBP/$..1.4244 $/CHF..= 1.6590 Japanese Forex Trading Preview by Darko Pavlovic No key data. Th= e dollar rose to a nine week high vs. the yen and six week high vs. the eur= o, lifted by the rise in US stock market and optimism that the economy will= rebound due to aggressive Fed rate cuts this year. The euro fell to $0.889= 7 against the dollar, weakened by last Friday's release of the German Ifo s= urvey which tumbled to an 8-year low of 95.0 from 89.5 in its largest drop = in 28 years. Today a number of German institutes admitted their conviction = that Germany is on the brink of a recession and therefore they lowered the = GDP forecasts for 2001 to 0.7% from 2.1% and for 2002 to 1.3% from 2.2%. Th= e institutes also slashed Eurozone growth estimates for 2001 to 1.5% from 2= .6% and for 2002 to 1.8% from 2.6%. In conclusion, the German institutes su= pported the ECB to cut rates by 25-bp to lower their rates to 3.5% by the e= nd of the year in order to redress the economic contraction in the European= nations. The euro will likely come under intense pressure this week due to= market consternation that the European Central Bank is unlikely cut rates = at their monetary policy meeting this Thursday. Finally, Welteke stated tha= t the ECB does not pursue an exchange rate goal but rather stability, addin= g that central bankers "always like a strong external" exchange rate. Welte= ke remarked that the euro was undervalued and said the dollar and the pound= are probably overvalued. Support is viewed at 89.0, 88.50 and 88.15. Resis= tance is seen at 90.20, 90.80 and 91.20. The yen fell to a 9-week low of 1= 22.58, amid pessimism towards Japan's economy after the release of two piec= es of data that confirmed the deterioration in the Japanese economy. The te= rtiary sector index fell to -0.1% in August, as the all industries index al= so registered in negative territory at -0.2% and thus suggested GDP would b= e poor. Japan's trade surplus also declined 43.1% y/y to 3.305 trillion yen= . Both pieces of data caused markets to refocus on Japan's weak fundamental= s, which will put downward pressure on the yen in the near-term. The BoJ br= anch managers warned that regional economic situation in worsening led by s= lowdown in production and exports on capital spending, employment and incom= e. The September 11 terrorist attack and mad cow disease have emerged as ne= w factors weighting on the economy. Finance Minister Shiokawa said he will = consider the proposal from New Komeito to reduce the amount of inheritance = tax on smaller firms. Under new proposal, inheritors of small and midsize c= ompanies would pay only 50% of the tax on company assets such as land, buil= dings and machinery if they continue the business for five years. The FSA u= rged major banks to boost their capital and increase management transparenc= y. The Resolution and Collection Corp. paid 1 yen per loan for 53.5% of the= bad loans bought from city banks and others as of Sept 30. Since the RCC m= ostly pay below the market price, banks usually bring the loans they alread= y gave up completely. Upside capped at 122.70, 123.0 and 123.30. Support st= ands at 121.20, 121.0 and 120.80. The pound dropped over one cent to a fre= sh 9-week low of 1.4213 against the broadly stronger dollar rather than on = intrinsic weakness in the UK currency as it traded near its session high of= .6240 against the euro. Resistance is eyed at 1.4325, 1.4350 and 1.4420. S= upport stands at 1.4250, 1.4215 and 1.4185. The Swiss franc hit a 5-week lo= w of 1.6640 against the dollar, but pared some loses in reaction of another= confirmed anthrax case and possible anthrax-related fatalities. Upside cap= ped at 1.6615, 1.6640 and 1.6670. Support holds at 1.6440, 1.6410 and 1.638= 0. Dow Jones rose nearly 1.9% or 172 points to 9377, boosted by the better= -than-expected earnings reports from 3M. NASDAQ rose by 2.2% or 36 points t= o 1708, as traders await reports from semiconductor firms Altera Corp. and = Vitesse Semiconductor Corp after the closing bell, and other bellwethers li= ke Compaq tomorrow. The major indicators due from the US this week include= the Employment Cost Index, durable goods, existing and new home sales, and= the University of Michigan Confidence Survey. From the Eurozone, key data = due for release are German PPI, Italian CPI, ISAE Industrial and Consumer C= onfidence Survey, French CPI, Italian Foreign trade, Euroarea M3 data and f= oreign trade. Markets await the ECB rate announcement on Thursday October 2= 5, even though the central bank is unlikely to ease monetary policy. Notewo= rthy data from the UK comprise the CBI Industrial Trends Survey and Q3 GDP.= Highlights from Japan consist of corporate service prices, consumer prices= and commercial sales. =09[IMAGE] Audio Mkt. Analysis USD Extends Broad = Rally to Pre Sep 11 Highs Articles & Ideas EURO: German IFO Will Rem= ind ECB to Build Growth Dollar Comeback Stopped by Risk of Terrorism = Articles & Ideas Forex Glossary Economic Indicators Forex Guides L= ink Library [IMAGE] =09 =09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09 =09=09 This e-mail is never sent unsolicited. If you wish to unsubscribe f= rom this or any other Forexnews.com newsletters, please click here . =09