Message-ID: <30597351.1075861042177.JavaMail.evans@thyme> Date: Tue, 19 Feb 2002 16:12:05 -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 Pre= view February 19, 7:00 PM: EUR/$..0.8763 $/JPY..133.42 GBP/$..1.4316 $/CHF= ..1.6875 Japanese Forex Trading Preview by Darko Pavlovic No key data Th= e dollar is trading around 133.50 yen, easing after reaching one-week highs= of 134.01 after Nikkei.net reported that BoJ Governor Hayami urged PM Koiz= umi to inject public funds into the banking system, and offered to ease mon= etary policy in return. Markets could regain optimism that there is still h= ope for Japan. Bush-Koizumi meeting did not produce any significant impact = on forex, but disappointment that Japanese government did not come out with= any major plan how to get the economy out of slump. The dollar hit one wee= k high vs. the yen, after Finance Minister Shiokawa said that its not time = yet to inject public funds into banks, further disappointing markets about = any visible hope for reforms. Restoring the health of Japan's banking secto= r is one of the most important elements of Japan's structural reforms burde= ned with mounting bad debt loans. Additionally, head of the LDP task force = on anti-deflation measures Aizawa called on the Bank of Japan to ease monet= ary policy when it meets next week by purchasing 200-300 billion yen worth = of foreign bonds, increasing its purchases of JGBs and adopting an inflatio= n target. Nevertheless, the injection of liquidity into markets is seen as = having a reduced impact on the Japanese economy since banks have made their= lending criteria stringent and only severely distressed firms are seeking = capital. Finally, the losses in yen will be limited by repatriation flows t= o Japan ahead of the end of the fiscal year on March 31. During his speech = to the Diet, Bush expressed firm support for PM Koizumi's reforms and calle= d for a revival of the Japanese economy. He said how wide-ranging policies = such as tax cuts; deregulation and efforts to improve the liquidity of bad = loans had helped revive the U.S. economy. Some senior LDP members took Bush= 's comments as guidance where Japanese economy should proceed. Support is s= een at 133.20, 133.0 and 132.50. Resistance is viewed 133.70, 134.0 and 134= .45 EUR/USD is trading around 87.60 after rising to a 1-week high of 87.82= in tandem with the 1-yen rise in EUR/JPY to a 1-week high of 117.15. The e= uro reached new heights on weakness in the dollar and yen, boosted by the f= ourth consecutive monthly rise in the expectations index of the ZEW German = sentiment survey by 14.3 points to 50.2. The current conditions component, = however, fell 3.1 points to 87.0. The expectations component of the ZEW in= dicator for the Eurozone also climbed 13.5 points to 56.6 in a sharp contra= st with the current conditions component which edged up a mere 0.2 points t= o 72.6. ECB council member Quaden said euro is undervalued would rise in m= edium term, preferred gradual trend. Quaden said euro interest rates are at= appropriate level.The single currency was underpinned as well by the rise = in Eurozone industrial production to 0.8% in December from the previous mon= th's -0.8% that suggests a turnaround in the sector, even though the annual= rate edged up only slightly to -4.1% from the previous -4.3% in a reflecti= on of the still contracting industry. In an interview with Bloomberg, ECB c= ouncil member Ernst Welteke expressed his concern about Eurozone inflation = and money supply, thus appearing to play down the chances for an ECB rate c= ut since the previous cuts had most likely not yet filtered through the eco= nomy. Welteke also questioned Germany's aim of attaining 2.25% growth rate = in 2003, since it would depend on the state of the US economy along with th= e wage round between trade unions and firms. Upside capped at 87.85, 88.10 = and the 200-day moving average at 88.50. Support is viewed at 87.0, 86.80 a= nd 86.45/50. Economists forecasted that tomorrow's release of US CPI most = likely rose for the first time in four months to 0.3% in January from the p= revious 0.2%, while core CPI edged up to 0.2% versus the previous 0.1%. Th= ey cited rising gasoline, medical care and housing costs as the reasons beh= ind the climb in consumer prices. This week's key US indicators consist of= CPI, jobless claims, international trade, index of leading indicators, Phi= ladelphia Fed survey and the Federal budget. Eurozone highlights include Ge= rman GDP, Italy's ISAE consumer confidence survey, Spanish GDP, German CPI,= Italian industrial orders, Euroarea balance of payments, Euroarea foreign = trade, French GDP, Italian CPI and Spanish CPI. Major data releases from th= e UK comprise money supply, balance of trade, Bank of England's MPC minutes= , and the CBI Industrial Trends survey. Key economic indicators from Japan = are general household spending and the index of tertiary sector activity. = =09[IMAGE] Audio Mkt. Analysis Yen Tumble Drives up EUR/USD Article= s & Ideas JPY: Japan's Reform Dilemma GBP: Old Lady Faces Old Problem = 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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