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Enron Mail |
[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 24, 7:00 PM: EUR/$..0.8934 $/JPY..122.85 GBP/$..1.4282 $/CHF..= 1.6569 Japanese Forex Trading Preview by Darko Pavlovic No key data. Th= e single currency strengthened vs. the dollar amid increased hope that the = ECB would cut interest rates at tomorrow's meeting as inflation in Germany = continues to fall.Today German Preliminary October CPI fell 0.3% m/m from t= he previous unchanged, and slipped to 2.0% y/y from the previous 2.1%- to m= ark its lowest level since August 2000, due to fall in oil prices and fuel.= German Preliminary Harmonised CPI was down 0.3% in October vs. the previou= s unchanged, but held steady at 2.1% y/y. German Chancellor Schroeder asser= ted there is no economic crisis, and thus no reason to fear a recession, ev= en though the prevailing fear is that Europe is on the brink of a serious d= ownturn. Today's German inflation data showing the national inflation rate= drawing near to the ECB's 2.0% target is seen as improving the possibility= the central bank will ease monetary policy in the future, but may not be t= he deciding factor in tomorrow's decision. In the latest Reuters poll, 27 o= ut of 50 economists anticipate an ECB rate cut tomorrow, an increase from l= ast week's 21. If the central bank fails to deliver a cut, market sentiment= suggests the euro will be sold-off on disappointment that the ECB is more = interested in falling inflation than to boost the growth. Resistance is see= n at 89.44, 89.80 and 90.10. Initial support is viewed at the 89.0-cent fig= ure, followed by 88.60 and 88.20. The yen was undermined vs. the dollar a= fter Japan's Vice Minister for Int. Affairs Kuroda said that a yen appreci= ation would be completely inconsistent with fundamentals sending Japanese = currency to 122.95 but later retrace to around 122.50 levels. Yesterday's r= elease of the Cabinet Office Survey compounded the pessimism, as it showed = Japanese consumer confidence tumbled 4 points in September to 36.9 and its = lowest level in three years on negative perceptions towards employment and = income. The Japanese govt. will spend 350 bln yen of the fiscal 2001 supple= mentary budget on grants, in order to create more than half a million jobs = by March 31, 2005. Japanese Finance Minister Shiokawa called for steeper sp= ending cuts in fiscal year 2002 in order to keep the new issuance of govern= ment bonds from rising above 30 trln yen. The leader for New Conservative P= arty Noda expressed his disagreement with the govt. proposal to issue bonds= convertible with state-held shares such as Nippon Telegraph and Telephone = Corp and Japan Tobacco. Noda said that the govt. should take aggressive fis= cal policy if necessary and not insist on restraining new bond issuance to = 30 trln yen. PM Koizumi instructed his govt. to bring forward reform measur= es such as deregulation. Some analysts think that Koizumi is having problem= s with the other LDP faction led by former PM Hashimoto who are opposed to = reform initiatives and he begins to lose his initial spirit in carrying out= the pace and scope of proposed reforms. Resistance is eyed at 123.30, 123.= 50 and 123.85. Support stands at 122.45, 122.27 and 121.87. The Fed Beige = Book confirmed the US economic activity was debilitated in the period after= the terrorist attacks. Especially noteworthy was the Fed's projection that= US manufacturing would not turnaround until 2002 because of broad-based we= akness, and also due to the longer-term effects on manufacturing from the S= eptember 11 attacks. Furthermore, the Fed said that security precautions af= ter the attacks were affecting productivity. The major indicators due from= the US this week include the Employment Cost Index, durable goods, existin= g and new home sales, and the University of Michigan Confidence Survey. The= ECI is forecasted to remain unchanged in Q3 at 0.9%, with slightly higher = benefit costs offsetting the marginal decline in wages. However, durable go= ods are projected to plunge to 1.3% m/m from the previous 0.0%, or plummet= to 16.4% y/y from the previous 11.5% as the terrorist attacks compounded= the weakness already present in the economy by prompting companies to dela= y or cancel their purchases. From the Eurozone, key data due for release ar= e German PPI, ISAE Consumer Confidence Survey, Italian Foreign trade, Euroa= rea M3 data and foreign trade. Markets anxiously await the ECB rate announc= ement on Thursday October 25. The remaining data release from the UK is the= Q3 GDP. Highlights from Japan consist of consumer prices and commercial sa= les. =09[IMAGE] Audio Mkt. Analysis Euro Steadies Ahead of Thursday's EC= B Meeting Articles & Ideas The US Dollar: Before and after the Crisi= s EURO: German IFO Will Remind ECB to Build Growth Articles & Ideas= Forex Glossary Economic Indicators Forex Guides Link Library [I= MAGE] =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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