Message-ID: <11415365.1075861037393.JavaMail.evans@thyme> Date: Thu, 24 Jan 2002 16:21:57 -0800 (PST) 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: \Sara_Shackleton_Mar2002\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: 1.75% 0.15% 3.= 25% 4.0% 1.25-2.25% [IMAGE] =09 [IMAGE] Japanese Forex Trading= Preview January 24, 7:00 PM: EUR/$..0.8775 $/JPY..134.87 GBP/$..1.4248 $/C= HF..1.6737 Japanese Forex Trading Preview by Darko Pavlovic At 6 PM Japa= n overall CPI down 1.7% y/y down 0.3% m/m The yen fell to a new three yea= r low of 134.90 vs. the dollar after Japan Dec. Nationwide Core CPI fell 0.= 9% from a year earlier, 27th consecutive month of decline. Nationwide core = CPI fell 0.8% in 2001 compared with the previous year, falling for the 2nd = straight year. Overnight the markets were discouraged by Japanese Finance M= inister's comments overnight that his policy was not to intervene in forex = markets, but to let them decide exchange rates. Traders interpreted his rem= ark as a signal to unload the yen. Finance Minister Shiokawa said yesterday= he does not think the yen's decline has been too rapid. Recall, that the y= en has lost 2% in just five preceding days. Shiokawa also added that the go= vernment plans to take action'' if the yen moves considerably. PM Koizumi= plans to prepare a comprehensive package of tax reforms designed to combat= deflationary pressure by spurring demand for real estate and housing. The = Council on Economic and Fiscal Policy will focus on raising the gift tax ex= emption on monetary gifts from parents to children to finance housing purch= ases and plans to reduce or eliminate various real estate transaction taxes= . A joint task force of government officials and the BoJ has agreed to ensu= re an ample supply of funds on the market and create demand through structu= ral reform, in order to bring deflation under control. The government forec= ast that the economy which started shrinking 14 months ago, will probably c= ontract 1% in the fiscal year ending March 31, and will likely have 0% this= year. Resistance is eyed at 135.0 and 135.50. Support holds at 134.0, 133.= 60 and 133.0. Federal Reserve head Greenspan said that the forces restrai= ning the US economy are diminishing and activity is beginning to firm. Gree= nspan clarified that in his speech on January 11, he had tried to communica= te that the economy was stabilizing while avoiding any talk about an econom= ic snap-back, and thus he regretted not phrasing his speech differently. Al= though Greenspan felt that the US is "just at this particular point turning= " in the US business cycle, he projected that the US is close to zero GDP g= rowth. On its part, the White House also indicated it saw increasing signs = of strength in the economy but also clouds. Therefore, the White House esti= mated "quite modest" GDP growth in Q1, followed by acceleration in growth l= ater. The euro is trading around 87.74 after falling to from its 1-month l= ow of 87.53, underpinned by European Central Bank Vice-President Noyer's de= claration in favor of a strong euro and that the ECB believes the European = economy will recover this year. Noyer explained further that the single cur= rency has sufficient room to rise without hurting industry. As for inflatio= n, Noyer reiterated that Eurozone CPI should drop "clearly below 2%" after = Jan-Feb and stay there. Resistance is viewed at 88.15, 88.60 and 89.10-- th= e 50% Fibonacci retracement of the move from 82.25 to 95.96. Support is see= n at 87.50-- the 31.8% Fibonacci retracement of the move from 82.25 to 95.9= 6, backed by 87.0 and 86.80. This week's remaining key US indicator is exi= sting home sales. From the Eurozone, major data due for release consist of = German PPI, Italian CPI, Italian retail sales and Spanish PPI. The release = of consumer prices in Japan is expected to reflect the prolonged deflationa= ry spiral that is adding to their economic woes. =09[IMAGE] Audio Mkt. = Analysis Markets Rally as Greenspan Clarifies Outlook Articles & Ide= as NAM & the Strong Dollar: Phase II Philly Fed-Supported Optimism = Articles & Ideas Forex Glossary Economic Indicators Forex Guides Lin= k Library [IMAGE] =09 =09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09 =09=09 This e-mail is never sent unsolicited. If you wish to unsubscribe fr= om this or any other Forexnews.com newsletters, please click here . Any op= inions expressed by representatives of Forexnews.com or its affiliates as t= o the commentary, market information, and future direction of prices of spe= cific currencies reflect the views of the individual analyst, and do not ne= cessarily represent the views of Forexnews.com or its affiliates in any way= . In no event shall Forexnews.com or its affiliates have any liability for = any losses incurred in connection with any decision made, action or inactio= n taken by any party in reliance upon the information provided in this mate= rial; or in any delays, inaccuracies, errors in, or omissions of informatio= n. =09