Message-ID: <19456518.1075855395622.JavaMail.evans@thyme> Date: Sun, 23 Dec 2001 17:35:07 -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_Jan2002\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 December 23, 7:00 PM: EUR/$..0.8967 $/JPY..129.52 GBP/$..1.4367 $/CHF= ..1.6507 Japanese Forex Trading Preview by Jes Black No Key Data Today T= he dollar went into the Christmas holiday season with a bang, ending Friday= 's US session up nearly 1.5% to against the euro at 88.67 and climbing to a= fresh 3-year high 129.66. Supporting the dollar was the third consecutive = rise in the University of Michigan Consumer Sentiment survey to 88.8 in the= final December reading from the preliminary 85.8. This contrasted with low= er than expected data from the Eurozone and the Bank of Japan's seventh str= aight month of lowering their assessment of the economy. Optimism for the U= S economy showing signs of recovery was enough to render the downward revis= ion of Q3 GDP to 1.3% a mute point. Confidence in a forthcoming rebound was= also enough to offset a 0.7% fall in consumer spending and a 0.1% fall in = personal income. EUR/USD fell to a low of 88.55 on Friday, undermined by a= steep selloff in EUR/JPY to a low of 114.50 after failing to maintain gain= s above 116. Dealers took profit from the euro's 6-week climb against the y= en to a fresh 2-year high of 116.61 on Friday. Dealers also noted that the = pair had been on a steady decline since hitting a 6-week high of 90.78 on M= onday and its failed attempts at maintaining above 90-cents were an ominous= sign. GBP/USD was also dragged lower by the fall in EUR/USD as well as lo= sses in GBP/JPY. Cable hit a 10-day low of 1.4344 as sterling shed most of = its 3.5-yen rise to a new 2-year high of 188.26. Nevertheless, the pound re= ached a 5-week high of .6156 against the euro as broad based weakness in th= e single currency weighed it down. Aside from euro weakness, sterling was a= lso supported by remarks from Bank of England Governor George who said that= there was a serious risk from a one size fits all monetary policy and that= the persistent weakness of the euro was creating problems for the British = economy. This highlighted the risk of the UK joining the euro given the ECB= 's reluctance to stimulate the economy despite the global downturn. Support= is viewed at 1.4350, 1.430 and 1.4275. Upside capped at 1.4475, 1.4515 and= 1.4550. The next key resistance is seen at 1.460- the upper bound of the d= ownward channel between the October 8 high of 1.4829 to the December 17 hig= h of 1.4607, and then 1.4755- the upward limit of the downward channel betw= een the January 12 high of 1.5101 and the October 12 high of 1.4829. USD/C= HF skyrocketed by 2 centimes to a 1-week high of 1.6550 on dollar strength = after the Swiss franc had reached a 4-day high of 1.6286. Safe-haven flows = were seen boosting CHF as money flowed out of emerging markets following th= e announcement Argentina's debt crisis. Fears of default inflamed fears abo= ut Argentina's fragile economic situation, and prompted considerable purcha= ses of the franc though that effect has since subsided. Resistance is seen = at 1.6550, 1.6585 and 1.6650. Support stands at 1.6465, 1.640 and 1.6370. I= n contrast, the Swiss franc made headway to a 3-week high of 1.4598 against= the declining euro. Today's Asian trading session is likely to be marked = by thin liquidity but dealers will remained focused on any comments coming = out of Japan after last week's remarks showed little concern for a weaker y= en. Japan's Ministry of Finance added fuel to the yen selling following int= ernational bureau chief Mizoguchi's reiteration that that the recent sharp = decline was merely a correction of its excessive strength this summer. Deal= ers noted that the welcoming of a weaker yen could put JPY under further pr= essure in thin holiday trade this week. However, the focus from here will b= e how Japanese, US and Chinese officials react if USD/JPY passes 130 becaus= e of the trade implications of such a weak yen. But so far, traders in New = York said it was not yet clear if the market would find the drive to test t= he psychologically critical 130 level this week after such a sharp run up i= n USD/JPY last week. =09[IMAGE] Audio Mkt. Analysis USDJPY Breaks Above 12= 9 Articles & Ideas 2002: Euro Deja Vu? USD/JPY: The Return of Doll= ar Rhetoric? 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. If you wish to unsubscribe f= rom this or any other Forexnews.com newsletters, please click here . =09