Message-ID: <1079477.1075861045847.JavaMail.evans@thyme> Date: Wed, 6 Mar 2002 16:11:16 -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 March 6, 7:00 PM: EUR/$..0.8766 $/JPY..130.77 GBP/$..1.4230 $/CHF..1.= 6817 Japanese Forex Trading Preview by Darko Pavlovic At 6:50 PM Japan Fe= b foreign reserves (exp n/f prev n/a) The yen is trading at a 2 month high= vs. the dollar, around 130.60 boosted by repatriation flows ahead of March= 31, an upgrade from Merrill Lynch and a rise in Nikkei. If the yen breaks = below 130-which are the lows from January 7th, it could strengthen vs. the = dollar to 129.30-129. Moody's rating agency announced that there was a high= probability that a new review would prompt a two-notch ratings downgrade i= n Japan's sovereign debt. Traders also wait for the release of Q4 GDP data = from Japan on Friday. The ruling LDP party is advocating the government to = compile new stimulus measures, as a way to help the economic recovery. Afte= r the fall in PM Koizumi's popularity it is more obvious that the ruling co= alition is trying to impose its decisions on they way how the government sh= ould deal with economic problems. Economic minister Tanaka and BoJ Governor= Hayami do not agree if inflation target should be set. Tanaka is in favor = of inflation targeting while Hayami thinks that its impact would be very li= mited on monetary policy. The House of Representatives passed the 81.23 tri= llion yen budget for fiscal 2002, which begins April 1. The total amount of= the budget fell 1.7% from fiscal 2001 and is the smallest since that for f= iscal 1998. The budget was submitted to the Diet on Jan. 25.Ten major think= tanks downgraded their GDP growth rate for the October-December 2001 quart= er. The contraction in GDP forecasted by the institutions averages 1.3% bel= ow the previous quarter, which converts into an annualized contraction rate= of 5.2% and would mark the third straight quarter-on-quarter decline. The = revisions were due to fall in corporate capital spending data for the same = quarter. Japan foreign reserves rose $403.486 bln at end February up $2.609= bln from a month earlier. A breach of 130.50 should trigger the testing of= the trend support line, which extends from 115.75 (Sep 20) thru 119.71 (No= v 12), at the 129.75 level. Resistance is seen at 132.50, 133.50 and 133.70= . EUR/USD is trading around 87.65 waiting for tomorrow's rate announcement= from the European Central Bank, even though analysts do not expect a rate = move. Having broken the near-term resistance of 87.55, EUR/USD will eye the= more challenging target of 88.10 cents, which is the 50% retracement of th= e slide from the year's high of 90.63 to the year's low of 85.63. From ther= e, the euro faces its next resistance at 88.50. Support is viewed at 87.0, = backed by 86.65 and 86.30. The majority of economists believe that the Bo= E will keep rates steady at 4.0%, particularly after the central bank gover= nor Eddie George made comments with the intent of dampening market hopes fo= r interest rate hikes later in the year. Sterling tumbled against the euro,= though, on reports of an impending deal between the UK's Imperial Tobacco = and Germany's Reemtsma. Cable is trading around $1.4230. Support holds at 1= .420, 1.4170 and 1.4130. Upside capped at 1.4256, 1.4280 and 1.430. Tomorr= ow's release of US Q4 productivity is forecasted to rise to 4.5% from the p= revious quarter's 3.5% due to an upward revision in GDP. This is a dollar s= upportive piece of data, though markets will still be waiting for Friday's = labor market report for a reading on the US economy. Major data due from t= he US this week consist of jobless claims, productivity, consumer credit, a= nd the labor market report. Key Eurozone indicators include the ECB rate de= cision, Italian GDP and Dutch CPI. The main data releases from the UK are h= ousing starts and the Bank of England's rate decision. Highlights from Japa= n comprise the MoF corporate survey, trade balance, indices of business con= ditions, GDP, money supply and wholesale prices. =09[IMAGE] Audio Mkt. A= nalysis USD/JPY Hits 2-month Low Articles & Ideas Will Dollar be Fue= lled against the Euro? Euro: The Lonely Tender Articles & Ideas For= ex 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. If you wish to unsubscribe f= rom this or any other Forexnews.com newsletters, please click here . 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