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Date: Sun, 20 Jan 2002 16:46:11 -0800 (PST)
From: info@forexnews.com
To: sara.shackleton@enron.com
Subject: Japanese Preview
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[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:   1.75%  0.15%  3.=
25%  4.0%  1.25-2.25%        [IMAGE]   =09 [IMAGE]  Japanese Forex Trading =
Preview  January 20, 7:00 PM: EUR/$..0.8858 $/JPY..132.40 GBP/$..1.4368 $/C=
HF..1.6592  Japanese Forex Trading Preview  by Darko Pavlovic  No key data.=
   Dollar seem well supported around 132.60 yen, waiting for official comme=
nts from US Treasury Secretary O'Neill who will meet Japanese officials on =
Monday to talk about the USD/JPY directions. In the past three months the y=
en fell around 9% vs. the dollar making Japanese currency more competitive =
abroad. A strong dollar policy prompted talks between representatives of th=
e National Association of Manufacturers and the US Treasury Undersecretary =
for International Affairs Taylor on Friday. Prior to his meeting with NAM r=
epresentatives, Undersecretary Taylor reiterated that O'Neill still believe=
s in the strong dollar policy. Taylor said he would listen to their view on=
 the economy, which he forecasted would grow at a rate around 3% by the end=
 of the year, thus marking a "pretty good recovery". On Friday Bank of Japa=
n Governor Hayami said that that it was important to maintain strong curren=
cy, adding that there is no central bank, which would like to see its curre=
ncy decline. In contrast, Finance Minister Shiokawa said that  the value of=
 the yen is decided by market movements  suggesting that the government is =
happy with the current currency's level. Economic Minister Takenaka said th=
at yen's recent fall was natural taken into consideration weak economy and =
central bank's monetary easing. Support is seen at 132.0, 131.80 and 131.60=
. Resistance is eyed at 133.0 and 133.35.  EUR/USD is trading around 88.50 =
unchanged from Friday, as EUR/JPY also climbed nearly two-third yen to a 3-=
session high of 117.38. On Friday, the single currency had been weighed by =
the largest monthly drop in 9 years in Italian industrial production of 2.6=
% m/m or 5.7% y/y that prompted Italy's ISAE to gloomily remark that it for=
esaw preliminary Q1 2002 industrial output being "stagnant" and in line wit=
h Q4 2001. The EU's statement that Eurozone GDP for 2001 could have fallen =
to a level between -0.3% and 0.1% also lent to the gloom hitting the euro. =
Resistance is seen at 88.80, 89.50 and 90.0. Support is viewed at 88.0, 87.=
50 and 87.0.  Looking ahead to this week, key US indicators include the Ind=
ex of Leading Indicators, jobless claims and existing home sales. Fed Chair=
man Greenspan's testimony before the Senate Budget Committee will be the ma=
jor event of the week, with markets cautious to hear his remarks on the eco=
nomy. From the Eurozone, major data due for release consist of Euroarea for=
eign trade, Euroarea industrial production, HICP, French CPI, Italian indus=
trial orders, Euroarea labor costs, German CPI, Italy's ISAE consumer confi=
dence survey, ECB monthly bulletin, German PPI, Italian CPI, Italy's ISAE i=
ndustrial confidence survey, Italian retail sales and Spanish PPI. Economic=
 highlights from Japan comprise the trade balance, index of tertiary sector=
 activity, corporate service prices and consumer prices.   The ministerial =
conference on Afghan reconstruction opening Monday in Tokyo is expected to =
goes through a three-phase rebuilding process and a promise of total financ=
ial assistance of about 2.5-3.0 billion dollars over the next two-and-a-hal=
f years. Japan promised to donate around 500 mln dollars.      =09[IMAGE] A=
udio Mkt. Analysis Dollar Fails to Rise on Strong U.Michigan        Article=
s & Ideas  Philly Fed-Supported Optimism   EUR/USD: Technical Analysis     =
  Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Li=
nk Library      [IMAGE]  =09
=09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09
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