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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: 1.75% 0.15% 3.= 25% 4.0% 1.25-2.25% [IMAGE] =09 [IMAGE] Japanese Forex Trading Pre= view February 27, 7:00 PM: EUR/$..0.8655 $/JPY..134.22 GBP/$..1.4189 $/CHF= ..1.7051 Japanese Forex Trading Preview by Darko Pavlovic At 12:00:00 AM = Japan Jan Housing Starts y/y (exp -5%, prev -12.9%) At 6:50:00 PM Japan Jan= Ind prod. y/y prel (exp n/f, prev -15.3%) Japan Jan Ind. Prod. m/m prel (e= xp 0.5%, prev 1.5%) The yen regains some ground vs. the dollar, after fall= ing to a 2-1/2 week low of 135, due to remarks from Vice Minister Kuroda's = that Japanese currency is unlikely to drop sharply. The yen was hurt on mar= kets' disappointment that the final release of Prime Minister Koizumi's ant= i-deflation package offered few real solutions to tackle the severe problem= s facing the economy. The package called the BoJ to further ease monetary p= olicy, which the central bank may do on today's meeting. (Increase bond pur= chases to 1 trln yen from current 800 mln). The government did not call for= mandatory injection of public funds into banks, but rather opted to use th= at choice in case of a substantial financial crisis. As far as bad debt loa= ns are concerned, the government asks RCC to play key role in bad loans cle= anup. All together, anti deflation program is a disappointment and even hig= h ranking LDP member Taro Aso said that he thinks measures are insufficien= t . Now all eyes are on BoJ policy meeting tomorrow and their possible deci= sion regarding bond purchases. If the Central Bank give in to govt. request= , the yen is likely to weaken further. The repatriation flows are probably = the only reason what keeps the yen from falling to 138-140 levels vs. the d= ollar but in two weeks when most of the overseas funds are brought home the= Japanese currency will likely resume its fall. Japan Jan prel. ind. output= fell 1% from the previous month (and worse than forecasts of 0.6% gain) Ja= n prel inventories down 1.1% m/m . Feb manuf. output seen up 4.7% m/m March= manuf. output seen down 0.9% m/m Japan's METI said ind. output continues t= o be in a declining trend. Resistance is eyed at 135.0, followed by the 3-y= ear high of 135.15. Support holds at 134.0, 133.60 and 133.20. Today, Fed = Chairman Greenspan's rationale behind his slight optimism was due to invent= ory behavior as a key sign that the economy is at a turning point, since as= the inventory cycle runs its course, consumer spending and income could re= ceive a lift. Greenspan remarked that although spending will increase, an e= conomic pick up might be more limited than compared with past recoveries. H= e expects Q4 productivity to be revised higher, and revealed that the Fed's= central tendency for US real GDP is between 2.5-3.0% in 2002. The Fed's ce= ntral tendency for the PCE Price Index is roughly 1.5% this year, and its c= entral tendency for the US unemployment rate in 2002 is between 6.0-6.25%. = EUR/USD is trading around 86.60 after declining to a session low of 86.26 = against the dollar, weighed in European trading by an unexpected decline in= German Q4 GDP to -0.3% q/q from the previous -0.2%. The German data posted= its first annual drop of 0.1% for the first time since 1996. In spite of t= he dismal data, German Finance Minister Eichel commented that the economy h= ad already reached a bottom, and consequently, he believes that all indicat= ors point to a surprisingly strong recovery. In spite of the slowdown in th= e Eurozone's largest economy, analysts do not believe the European Central = Bank will change rates when it meets next week to determine monetary policy= , especially in light of the rise in M3 to 8% from the previous 7.8%. Both = the EU's Prodi and the EcoFin's Rato declared that the economy is in good s= hap and will recovery in the latter half of the year, thus negating the nee= d for changes in current monetary and budget policies. Upside capped at 87.= 0, 87.40 and 87.80. Support is seen at 86.0, 85.50 and 85.0. Currency mar= kets will now look to tomorrow morning's releases of US GDP and Chicago PMI= for further clues about the state of the US economy. Q4 '01 GDP is expecte= d to be revised upwards to 0.8% from the advanced reading of 0.2%, boosted = by stronger spending and helped by the better trade deficit. Later in the m= orning, traders will assess the Chicago PMI that will likely foretell of a = breakthrough in the ISM PMI on Friday. Chicago PMI is forecasted to rise to= 47.7 in February compared with the previous month's 45.1 as conditions in = the Midwest manufacturing region continue to improve. =09[IMAGE] Audio M= kt. Analysis USD Tempered by Greenspan's Cautiousness Articles & Idea= s Goodbye Hope, Sayonara Yen Will Greenspan & Data Overcome Enronitis? = 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 . Any = opinions expressed by representatives of Forexnews.com or its affiliates as= to the commentary, market information, and future direction of prices of s= pecific currencies reflect the views of the individual analyst, and do not = necessarily represent the views of Forexnews.com or its affiliates in any w= ay. In no event shall Forexnews.com or its affiliates have any liability fo= r any losses incurred in connection with any decision made, action or inact= ion taken by any party in reliance upon the information provided in this ma= terial; or in any delays, inaccuracies, errors in, or omissions of informat= ion. =09
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