Message-ID: <12958648.1075858804278.JavaMail.evans@thyme> Date: Tue, 23 Oct 2001 16:03:35 -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: @ENRON X-To: Shackleton, Sara 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 23, 7:00 PM: EUR/$..0.8902 $/JPY..122.55 GBP/$..1.4253 $/CHF..= 1.6599 Japanese Forex Trading Preview by Darko Pavlovic At 1:30:00 AM Jap= an Sept Dpt. Store Sales (exp n/f, prev -0.3%) At 12:30:00 AM Japan Sept Su= permarket Sales (exp n/f, prev -5.2%) The dollar reached a two-month high = vs. the yen of 123.03 but later in the trading pared its gains and is tradi= ng around 122.60 yen after newly reported anthrax cases. The yen weakened v= s. the dollar after government survey released overnight showed Japanese co= nsumer confidence tumbled 4 points to its lowest level in three years to 36= .9 in September, amid negative perceptions regarding employment and income.= In addition, the yen fell against the dollar and euro after a statement by= Toyota VP Araki that the firm plans to exchange almost $20 billion worth o= f cash reserves from yen into other currencies in order to increase investm= ent outside of Japan. A Toyota spokesman later stated that the reserves cou= ld vary depending on Toyota's investment plans. However, such a large trans= action would further weaken the yen. The Finance Ministry revealed that tra= de surplus fell 43% in the first half of this compared with the same period= last year, due to fluctuations in the business cycle and increased strengt= h in other Asian countries. Also supporting the falling trade surplus is de= cline of the US economy, the biggest Japan export partner. The ruling party= in Japan is planning to propose a plan to strengthen the role of the Resol= ution and Collection Corp. held up over the time limit of bad loans disposa= l: LDP is pressing for three years limit while Komeito party has advocated = for five years deadline. Support stands at 122.45, 122.27 and 121.87. Upsid= e capped at 123.30, 123.50 and 123.85. The single currency benefited from= more anthrax scare in the US, rising form a six-week lows to $0.8900 in sp= ite of further decline in euro zone economies. Italian business confidence = fell to its lowest level since 1962, to 84 in September from the previous 9= 6. Also the euro was undermined by flow in insurance payments from European= insurers to the US after the September 11 attacks. Traders are likely to s= ell the euro ahead of Thursday's ECB meeting because of its apparent reluct= ance to cut rates by 25-bp to shore up growth in the flagging European econ= omies. But today's release of preliminary inflation from Germany and Italy = indicated that price pressures are easing and will therefore give the ECB f= lexibility to reduce rates before the end of the year. Data from 3 German s= tates suggested that the national inflation rate is falling towards the ECB= 's 2.0% target, while data from Italian cities suggested the overall Italia= n inflation rate is on course to slip to 2.5% in October from the prior mon= th's 2.6%. Resistance is seen at 89.20, 89.55 and 89.80. Support is viewed = at 88.60, 88.20 and 87.80. The swiss franc fell vs. the dollar but later r= ecovered due to anthrax after the European Union defined limits on the use = of Swiss financial aid to bail out SwissAir in accordance with the EU's tra= nsportation agreements. Overnight, the Swiss franc plunged to a new 6-week = low of 1.6682 as markets mulled the Swiss franc's image of safe heaven curr= ency that was tarnished by the SwissAir insolvency. Any subsequent apprecia= tion in the Swiss franc arising from safe-haven flows will likely expedite = further rate cuts. The SNB has already eased rates twice to around 2.25%, a= nd economists forecast another 50-bp reduction in store before December to = bring its target rate down to 1.75%. Support is seen at 1.6565 and 1.6525. = Upside capped at 1.6640, 1.670 and 1.6740. The White House's Hubbard note= d that it is too soon to say that the US economy is in a recession, even th= ough Q3 and Q4 GDP are "particularly adversely affected" by the September 1= 1 attacks which could have a potential long-lasting effect on business and = consumers. Therefore, while the probability of a US recession has risen "su= bstantially" since the attacks, Hubbard tempered his statement by remarking= that any US economic downturn will likely be "quite modest". US stocks ret= reated from positive territory after news of more anthrax cases, sending th= e Dow down 36 points to 9340 and NASDAQ down 3 points to 1704. =09[IMA= GE] Audio Mkt. Analysis Dollar Gives Back Gains After More Anthrax Ar= ticles & Ideas The US Dollar: Before and after the Crisis EURO: German I= FO Will Remind ECB to Build Growth Articles & Ideas Forex Glossary = Economic Indicators Forex Guides Link Library [IMAGE] =09 =09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09 =09=09 This e-mail is never sent unsolicited. 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