Message-ID: <31861218.1075858801085.JavaMail.evans@thyme> Date: Wed, 17 Oct 2001 16:08:02 -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 17, 7:00 PM: EUR/$..0.9026 $/JPY..121.25 GBP/$..1.4460 $/CHF..= 1.6404 Japanese Forex Trading Preview by Darko Pavlovic At 1:00:00 AM Jap= an August Coincident Ind Rev (exp n/a, prev 0.0) The single currency fell = for the sixth day in seven against the dollar, hitting a session low of $0.= 9013, after the ECB's Chief Economist Issing said that dampen the markets e= xpectation of another rate cut on October 25. Issing said that the Central = Bank should focus on restraining inflation and the ECB President Duisenberg= , in a separate statement said that controlling inflation remain bank's ma= in focus . Overall market sentiment was not improved by Fed Chairman Greens= pan's testimony to Congress indicating the US economy faced weakness. The W= hite House's Lindsey said today the US will probably see "small negative" G= DP in Q3, therefore making it likely the US economy will have 2 quarters of= negative GDP and officially be in a state of recession. Further fueling ma= rket concern about the US economic outlook that sent the stocks lower were = confirmation that 31 of Senator Daschle's staff tested positive for anthrax= exposure and a new possible case of anthrax contamination of New York Gove= rnor Pataki's Manhattan offices. Eurozone HICP fell to 2.5% y/y in Septembe= r from the previous 2.7%, drawing near the ECB's 2.0% interest rate target.= The single currency can continue to weaken vs. the dollar after Friday's I= fo business climate index, which is expected to decline to a new 5-year low= of 88.1 from the previous 89.5. A weak Ifo reading will renew the pressure= on the ECB to cut rates to address falling demand, and should the ECB choo= se to prioritize price stability over growth, the euro will likely suffer a= s a result. Upside capped at 90.65, 90.90 and 91.25. Support stands at 90.1= 0, 89.90 and 89.60. The dollar eased vs. the yen trading around 121.25, af= ter reaching overnight levels of 121. 79 just a bit off its one month high = reached on Tuesday, amid markets speculation that Japanese authorities woul= d once again attempt to depreciate their currency by buying foreign assets.= Finance Minister Shiokawa stated his desire the Bank of Japan would halt a= protracted decline in prices by continuing its monetary policy easing. Shi= okawa's comments followed those from Bank of Japan governor Hayami who said= it was inappropriate for Japan to set a target on providing liquidity and = that monetary easing would have little impact while Japan's structural prob= lems remained. President Bush urged Japan to accelerate its economic reform= package, including disposal of bad loans. Shiokawa said that 30 tlrn yen b= ond issuance cap may not apply to war on terrorism. Shiokawa added that he = is still not sure how much money Japan will need to help the US led militar= y campaign against Afghanistan. Asia Pacific Economic Cooperation Forum dec= ided to start in November the next round of multilateral talks under the WT= O. Resistance is seen at 121.80, 122.0 and 122.50. Support at 121.0, 120.50= and 120.15. US stocks plummeted on new cases of anthrax, shrugging off t= he upward momentum generated by positive earnings reports from IBM and Inte= l. Dow plunged by 1.6% or 151 points to 9232 and NASDAQ fell by 4.4% or 75 = points to 1646 in its largest daily drop since April 23. Major economic dat= a due this week from the US include the Philadelphia Fed Survey, CPI and in= ternational trade. Economists in a recent Reuters survey expected the Phila= delphia Fed Survey due for release tomorrow to plummet to -15.3 in October = from -7.3 in September, corroborating the dire straits of the manufacturing= sector which has contracted for 10 straight months by remaining below the = zero level. In a separate Reuters poll, economists predicted that Friday's = release of CPI will reflect the rise in oil prices and climb to 0.3% in Sep= tember from the previous 0.1%. Most economists believe that inflationary pr= essures remain subdued because of the economic slowdown. Mild inflation wil= l allow the Federal Reserve to continue to ease monetary policy to address = the US contraction that likely worsened after the September 11 attacks. Key= indicators from the Eurozone are the ECB monthly bulletin and Germany's IF= O business climate survey. From the UK, markets await economic data this we= ek including money supply, balance of trade and retail sales. =09[IMAGE]= Audio Mkt. Analysis Euro Closes Below 90.50 Despite New Anthrax Cases = Articles & Ideas EURO: German IFO Will Remind ECB to Build Growth Dol= lar Comeback Stopped by Risk of Terrorism Articles & Ideas Forex Glos= sary Economic Indicators Forex Guides Link 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