Japanese Preview

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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 11, 7:00 PM: EUR/$..0.8764 $/JPY..133.35 GBP/$..1.4220 $/CHF=
..1.6830 Japanese Forex Trading Preview by Darko Pavlovic No key data Th=
e dollar fell to 133.40 yen from its Friday's highs of 134.70 yen on combin=
ation of repatriation from Japanese investors and renewed pessimism about t=
he US fast recovery. As the March 31 approaches, the end of fiscal year, ma=
ny Japanese investors are repatriating funds home and at this time of year =
the yen usually strengthens vs. the dollar. Also the yen was supported by r=
emarks from Finance Minister Shiokawa that Japan is considering using 2 tri=
llion yen to buy stocks. Markets are also waiting for U.S. President George=
W. Bush's visit to Japan on Feb. 17.It is likely that Bush will give suppo=
rt for Koizumi's reforms but also show concern about the weak state of Japa=
nese economy and the pace it is implemented. Analysts say that speculation=
that banks will sell their foreign bond holdings to raise funds necessary =
for bad-loan disposals ahead of the fiscal year-end might help shore up the=
yen. Finance Minister Shiokawa said Saturday there were no questions or po=
licy requests made of Japan during the meeting of finance ministers and cen=
tral bankers of the G-7 leading industrial nations. The government and the =
ruling coalition agreed Monday to increase salaried workers' medical paymen=
ts to 30%, up from the current 20%, in April 2003. The officials decided to=
raise the rate of insurance premiums of the government-run health insuranc=
e program, designed for workers at smaller firms, to 8.2% from 7.5% on an a=
nnual income basis. Nihon Keizai Shimbun survey reported Sunday that listed=
companies bought back 1.44 billion of their own shares from the beginning =
of last April through the end of January. The increase is due to a growing =
number of cross-held shares unloaded mainly by banks and to recover corpora=
te financial indicators intensely watched by investors, such as return on e=
quity and profit per share USD/JPY support is viewed at 133.30, 133.0 and 1=
32.65. Resistance is seen at 134.0, 134.60 and 135.0. EUR/USD is trading a=
round 87.70 after reaching 2-1/2 week high of 88.01 against the dollar, , l=
ifted by the euro's rise against the Swiss franc following Swiss National B=
ank board member Niklaus Blattner's remarks that he hoped the euro would ri=
se because the strong Swiss franc remained a concern. Blattner also noted t=
he presence of signs indicative of a Swiss economic recovery in the latter =
half of the year, and thus said the direction of the next rate move remains=
open. The single currency was hurt by comments from Austrian Finance Minis=
ter Grasser that he supported the European Union's budget warning to German=
y since he believed there should not be a distinction between big and small=
countries under the EU stability pact. The euro could be further undermine=
d tomorrow when the EU finance ministers meet. Markets are speculating whet=
her the EU will issue an official warning to Germany because of its rising =
deficit approaching near the 3% of GDP limit. In rebuttal, German Finance M=
inister Eichel vowed today to do everything to avoid a row over a budget wa=
rning, and promised to recommit Germany to balancing the budget by 2004 tha=
t would require higher growth than currently forecasted. EUR/USD support is=
seen at 87.0, 86.65 and 86.40. Upside capped at 88.0, 88.50 and 89.0. Thi=
s week's major US economic releases include retail sales, jobless claims, b=
usiness inventories, import prices, PPI, industrial production and the Univ=
ersity of Michigan confidence survey. Key Eurozone indicators consist of Sp=
ain's labor force survey, Euroarea EcoFin meeting, German foreign trade, Sp=
anish retail sales, ECB monthly bulletin, Dutch GDP, French employment, Fre=
nch trade balance, French industrial production and Italian industrial prod=
uction. Noteworthy UK data releases are retail prices, labor market report =
and the Bank of England inflation forecast. Highlights from Japan comprise =
the Cabinet Office economy watchers survey, GDP, balance of payments, indus=
trial production and Tokyo department store sales. =09[IMAGE] Audio Mkt.=
Analysis EUR/JPY Sets the Pace Articles & Ideas The Swiss National =
Bank and the franc A Weak Yen Bites Articles & Ideas Forex Glossary=
Economic Indicators Forex Guides Link Library [IMAGE] =09
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