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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] FX Trade Subdued, Marke= ts Look To Greenspan January 11, 7:00 AM: EUR/$..0.8919 $/JPY..132.09 GBP/$= ..1.4434 $/CHF..1.6586 FX Trade Subdued, Markets Look To Greenspan by Jes = Black At 8:30:00 AM US Dec PPI y/y (exp -1.6%, prev -1.1%) US Dec PPI m/m = (exp -0.2%, prev -0.6%) US Dec PPI ex food energy (exp 0.9%, prev 0.9%) Ev= ent: At 1:45 PM Fed Chairman Greenspan speech FX markets were relatively q= uiet today as the majors kept within yesterday's ranges. European bourses w= ere mixed and the lack of economic data kept traders away from taking decis= ive positions ahead of the weekend. Most subdued was EUR/USD, which continu= es to move within a tight range of 89.10 to 89.30. Meanwhile, markets liste= ned to more remarks from Japanese officials that the yen's fall was nearing= its limit. JPY rose to a day's high of 131.88 vs USD and 117.67 vs EUR, bu= t failed to make a decisive break past the key levels of 131.50 and 117.50 = which would herald more corrective yen buying. Overnight, Japanese Trade M= inister Hiranuma said that with the dollar approaching 135 yen, the pair wa= s approaching is limit. On Thursday, Ex-Japanese Minister of Finance Sakaki= bara, aka Mr. Yen, also warned of possible Japanese intervention if the dol= lar rises above the psychological level of 140 yen. However, said he still = sees the yen possibly falling to 150-160 per dollar towards year end. The= recent change in JPY sentiment from talking it lower to trying to stabiliz= e its fall has two motivations. First, the Japanese dislike sharp falls in = their currency and prefer gradual moves, which appear more stable. In addit= ion to the yen's 10% decline over the past 2 months, PM Koizumi is currentl= y on a 7-day tour around Southeast Asia, which began on Wednesday. Therefor= e, the political implications of a weak yen divisive, with ASEAN economic m= inisters worried that that the weakening in the yen could create malaise in= other Asian markets. Therefore, for political reasons Japanese officials a= re now likely to remain quiet until the PM returns. This temporary shift i= n sentiment has caused a bout of profit taking and a period of consolidatio= n would not be unusual following the yen's steep fall. But any correction i= n USD/JPY would likely hold around 130-132 dealers say before the next push= higher. EUR/JPY fell to a day's low of 117.76 but has importantly held abo= ve Wednesday's low of 117.50. Only a break of this mark would target last w= eek's lows around 116.90 and the 2-week low of 116.50. Upside is seen cappe= d at 118.75 and last week's 2-year high of 119.71. CHF broke out of a tigh= t 20 pip trading range against the dollar and rose to a day's high of 1.657= 8 following hawkish remarks from an Indian army chief over the prospect of = war with Pakistan. EUR/CHF also fell to a low of 1.4785 from highs around 1= .4840. GBP/USD rose to a session high of 1.4452, but again failed to maint= ain gains above the key 1.4440 level. Sterling, like the euro, has continue= d to trade in a tight range against the dollar this week, thus reflecting t= he market's indecision about the rosy prospects for the US economy. Overnig= ht, GBP fell from a high of 1.4460 to a low of 1.4370 despite strengthening= against the dollar on Thursday after the Bank of England decided, as analy= sts expected, to leave interest rates unchanged at a 37-year low of 4.0% be= cause of signs of robust consumer and housing spending. The BoE's decision = underlines the better performance of the UK economy relative to other G7 na= tions. Nonetheless, the pound continues to be undermined by market speculat= ion about the UK joining the EMU. Support holds at 1.4370, 1.4340 and 1.432= 0. Resistance is seen at 1.4465, 1.450 and 1.4550. Against the euro, resist= ance at 61.70 held today, which should keep sterling's gains in check. Mea= nwhile, EUR/USD price action was subdued as it hovered in a tight 20 pip ra= nge of 89.11 to 89.31. The pair continues to move within a channel from 88.= 70 to 89.50 as it hovers around the key 89.10 level, which marks the 50% Fi= bonacci retracement of the move from 82.25 to 95.96. This level is signific= ant in that it reflects an equilibrium in supply and demand condition betwe= en euro and dollar. Overnight, the pair briefly tested resistance at 89.35,= but was rejected. Now, failure to maintain above 89.10/20 would probably c= all for a test lower to 88.70 followed by 87.60, which marks the 61.8% Fibo= nacci retracement level of the same move. Moves higher are not seen by the = market as indicating strength given the euro's difficulty to remain above 9= 0-cents. But given the mixed data from the Euro area and the US, investors = are seen waiting on the sidelines ahead of the latest round of earnings rep= orts from the US for better direction. Meanwhile, markets will be looking = for signs of economic recovery in the US and more gains on Wall Street afte= r two days of diverging finishes. On Thursday, the Dow fell 0.2% while the = Nasdaq rose 0.1% ahead of next week's corporate earnings reports which over= shadowed better-than-expected retail and economic data. Dealers will watch = to see if U.S. markets are getting ahead of themselves in anticipating a U.= S. recovery, meaning that share prices may be overvalued. Markets will pay= careful attention to Fed Chairman Greenspan's speech today for any mention= about the US outlook, as it will be his first speech on the economy since = last October. Today's US indicator is PPI, which is forecasted to rise to= -0.2% in December from the previous -0.6% but remain below zero for the th= ird straight month as energy and food prices continue to decline. Core PPI = is projected to edge down to 0.1% in December from 0.2% in November, in a r= eflection of how overall inflationary pressures remain mild. =09[IMAGE]= Audio Mkt. Analysis BoE inaction Lifts GBP, Comments Hurt CHF Artic= les & Ideas A Weak Yen Is the Solution for Now What's Next For the Euro= ? Articles & Ideas Forex Glossary Economic Indicators Forex Guide= s 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 fr= om this or any other Forexnews.com newsletters, please click here . =09
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