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[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 18, 7:00 PM: EUR/$..0.9026 $/JPY..121.11 GBP/$..1.4434 $/CHF..= 1.6370 Japanese Forex Trading Preview by Darko Pavlovic No key data. Th= e dollar erased morning gains vs. the euro after the release of the October= Philadelphia Fed Survey showed manufacturing dropped to 27.4 more than ma= rket expected. (Expectations were of 16). German Finance Minister Eichel s= aid that Europe's biggest economy would likely expand 0.75%, less than half= the official forecast six months ago. (previous expectations were at 2.1%)= . Analysts say that downgrade in German growth imminently lead to demote in= European growth. The widely followed IFO survey, due on Friday, is another= significant indicator of the economic outlook in Germany, the Euro-zone's = biggest economy. The latest Reuters poll projects the IFO index will declin= e to a new 5-year low of 88.1 from the previous 89.5. The index was at its = highest levels at 107.3 in November 1990, and its lowest point of 76.7 was = reached in 1982. The single currency is also undermined by market perceptio= n that the ECB is behind the curve in cutting interest rates to promote gro= wth. Today's release of the Bank's October Bulletin echoed last week's stat= ements by Bank Chief Duisenberg that the Bank is closely monitoring monetar= y developments. It reiterated that monetary developments showed no risks of= inflation but still called for vigilance. But even if increased hints of a= near-term rate cut might appear to ease the euro's undecisiveness, the mou= nting jobless situation in the Eurozone is also taking its toll on the regi= on's economy. More than 650,000 jobs were lost over the last couple of mont= hs. EUR/$ faces resistance at the congestion area of 90.70-75, followed by = 91.35, which is the 20-day moving average . Support stands at 90 cents back= ed by 89.70 and 88.38, which is the 50% retracement of the rise from 83.90 = to 93.35. The Organization of Economic Cooperation and Development (OECD) = said it would cut its 2002 growth forecast by half according to a prelimina= ry report. US 2002 growth forecast revised to 1.3% from the earlier 3.1%, E= U 2002 growth forecast revised to 1.5% from 2.7%, Japan 2002 growth down to= -0.8% from earlier projections of 1.1%. USD/JPY remained in mostly letha= rgic trade deviating little from its 200-day Moving Average of 121. The las= t 6 trading session had seen increasingly tight ranges reflecting the uncer= tainty on behalf of traders, reflecting risk aversion by Japanese traders t= o venture. The yen rose after the ex US Secretary of Treasury Rubin said = a weak yen is not an answer to Japan's economic problems and solution lie= s in the area of structural reform, things like open credit markets and dea= ling with fiscal problems Japanese Finance Minister Shiokawa said the yen = is still strong and should weaken a bit more, which could hint further fore= x interventions ahead. Japanese govt. sold around $25 bln in yen in seven f= orex interventions to weaken its currency which is making exports less comp= etitive and adding to more problems to already weak economy. The govt. plan= s to spend some 95 bln yen to boost subsidies for unemployed as part of its= half-trillion yen spending for employment in the supplementary budget for = fiscal 2001. Winter bonuses for Japanese employees are likely to decline on= average by 3% , a fifth consecutive year of decline, which is likely to fu= rther weigh on spending. Two day meeting in Shanghai by ministers from 21 P= acific Rim economies will likely produce a strong commitment to free trad= e as a way to fight terrorism. Support starts at 120.80 backed by 120.50 an= d 120.20. Upside seen capped at 121.20-25, with follow-up buying testing 12= 1.50 and 121.80. Markets will consider tomorrow's release of the September= Ifo survey from Germany (4 AM Eastern Time , 8AM GMT) expected to drop to= a fresh 5-year low of 88 from the previous 89.5. The report, this week's m= ost important release from the Eurozone, should reflect a substantial perio= d after the Sep 11 attacks, thus will likely show a fresh arrest of busines= s confidence and expectations. 4 hours later, US markets will see the rel= ease of the September CPI, which is expected to rise by 0.6% from August's = 0.1% with the increase mainly stemming from a temporary boost in gasoline p= rices. Also at 8:30 AM is the August trade data expected to show an improve= ment in the deficit to -$27 bln from -$27.9 . =09[IMAGE] Audio Mkt. Anal= ysis Euro Closes Below 90.50 Despite New Anthrax Cases Articles & Ide= as EURO: German IFO Will Remind ECB to Build Growth Dollar Comeback Sto= pped by Risk of Terrorism 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
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