[IMAGE] Forums Discuss these points in the Forums:  Forexnews Forum       Technicals 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:   2.0%  0.15%  3.25%  4.0%  1.75-2.75%       [IMAGE] 	 [IMAGE]  Japanese Forex Trading Preview  November 19, 7:00 PM: EUR/$..0.8733 $/JPY..123.07 GBP/$..1.4125 $/CHF..1.6577  Japanese Forex Trading Preview by Darko Pavlovic  No key data.   The dollar advanced to three-month highs vs. the euro, yen, and the pound amid rally in US stocks that signal rebound in the economy and optimism about the anti-terrorist war in Afghanistan. The dollar rose to 123.50 yen, its highest level since August 9 as Japanese currency weakened after the Bank of Japan downgraded its assessment of the economy for the sixth straight month in its November, due to deteriorating consumption, corporate profit, capital spending, employment and income. Thus the BOJ affirmed that "the adjustment is becoming more severe", and many economists already expect July-September GDP to confirm the Japanese economy is in a recession. PM Koizumi decided to draw up second supplementary budget for the fiscal 2001 totaling more than 2 trln yen. The second supplementary budget is aimed to boost the ailing economy. Last week Parliament enacted a 3 trln yen budget to increase employment but Koizumi thought that the measure is not enough, as the economy continues to deteriorate. The Ministry of Finance projected that FY02 tax revenue will probably be revised down by Y2.8 trln from Y49.6 trln, thus making it difficult to abide by the 30 trillion yen JGB cap pledged by Prime Minister Koizumi. Index rebalancing by Morgan Stanley (global equities) and JP Morgan (global bonds) are both yen negative which could further hurt the yen to levels above 124 in near future. PM Koizumi's reform plan for highway construction projects triggered opposition from some members of leading LDP party. The issue is sensitive because road construction projects have been on of methods for lawmakers to win votes. If Kouzimi stays determined to reform highway projects about 40% of all projects may have to be cut.   Initial resistance is seen at 123.50, followed by 123.70 and 124.0. Support stands at 123.0, 122.60 and 122.15.   The euro is trading around 87.84  holding above its fresh 3-month low of 87.67after  the Bundesbank's monthly report for November noted German growth was flat in both Q3 and Q2, as many economists foresee a contraction in Q4 because of declining confidence and weak manufacturing. Markets are anxious about Wednesday's German Ifo Business climate index that estimates German growth, which accounts for about one-third of the total Eurozone. Economists forecast the Ifo will remain unchanged at 85 in November after plunging to that level in October from 89.5. Disappointing results will most likely spark renewed selling in the euro. The euro got a brief support from the ECB's Chief Economist Issing who left the door open for future rate cuts by saying there is a good reason to expect Eurozone inflation in 2002 to fall below 2%. His colleague at the European Central Bank Ernest Welteke cheerfully pronounced that the ECB does not see a Eurozone recession in 2001 but rather growth both this year and next.Eurozone Industrial production will likely decline to -1.2% m/m in September from the previous 1.1% or to -1.4% y/y vs. the previous 0.4%. Support is seen at 87.50, 87.20 and 86.80. Upside capped at 88.05, 88.30 and 88.55.   Wednesday's release of the Bank of England's monetary policy committee meeting minutes for the explanation behind the rate cut enacted on November 8, and also for any hints about future decisions. Another significant piece of economic data that is likely to impact the pound's direction is the second release of the UK's GDP for Q3. Support is viewed at 1.410, 1.4075 and 1.4050. Upside capped at 1.4230, 1.4265 and 1.430.  Data due tomorrow from the US include the September trade balance and the index of Leading Indicators. Economists forecast the trade balance will improve to  24.7 billion in September from the previous  27.1 billion, with some estimates indicating an improvement to as much as  15.0 billion as both exports and import levels dropped sharply after the September 11 attacks. Additionally, economists attribute the narrowing trade deficit to the WTC-related reinsurance payments that ebbed as premiums flowed. In a tentative sign of improvement in the US economy, the Index of Leading Indicators is anticipated to rebound in October to positive territory to 0.1% from the previous  0.5%, after posting back-to-back drops. This week's other key US indicators consist of jobless claims and the University of Michigan Confidence survey.    	[IMAGE] Audio Mkt. Analysis USD Hits Fresh Multi-month highs vs EUR, JPY, GBP       Articles & Ideas  USD/JPY: The Next Level   OPEC: The beginning of a price war?       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