[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:   1.75%  0.15%  3.25%  4.0%  1.25-2.25%       [IMAGE] 	 [IMAGE]  Japanese Forex Trading Preview  February 12, 7:00 PM: EUR/$..0.8763 $/JPY..132.75 GBP/$..1.4320 $/CHF..1.6850  Japanese Forex Trading Preview by Darko Pavlovic  At 6:50:00 PM Japan Q3 GDP y/y revised (exp n/f, prev -2.2%) Japan Q3 GDP q/q revised (exp n/f, prev -0.5%)  The dollar fell to a new one week low vs. the yen around 132.70, due to repatriation flows and on talks government would step up to rescue ailing banks. The Japanese currency also rose by nearly a full yen to a 3-session high of 116.19 against the euro, in spite of the Bank of Japan's continuing gloomy economic outlook for the second month in a row in February. In its monthly report, the BOJ cited deteriorating labor market conditions and a worsening deflationary spiral as reasons for its pessimism. July-Sept real GDP revised to - 0.5% q/q (vs. prel -0.5%) Japan July Sept capital spending revised to up 1.6% q/q (prel up 1.1%) Japan Jan net foreign bond selling Y3.0712 trln yen (Dec Y827.1 bln selling) Foreigners' Jan net Japan bond selling Y1.2368 trln (Dec Y172.22 blne selling). Separately, a report in the Nihon Keizai Shimbun said that Standard & Poor's rating agency might change its ratings on Japanese government bonds unless Japan pushes through reform measures or starts exhibiting signs of a rebound. In the coming days, FX traders will be listening for any comments that may emerge from President Bush's trip to Japan on February 17. Nihon Keizai Shimbun survey showed that only balancing economic stimulus pared with structural reforms could bring the country out of recession. Only one out of three Japanese in a survey thinks that PM Koizumi will be able to implement reforms without sacrificing growth, employment. Japan is nervously trying to create the outline of its comprehensive policy remedy to tackle inflation ahead of US President Bush's weekend visit to Japan. "The problem of deflation is an extremely important issue in structural reform," Koizumi said and "the government and the BOJ must tackle this together." Nihon Keizai Shimbun survey conducted over the weekend announced that public approval for PM Koizumi plunged to its lowest level of just 55% down 23 points from November due to recent firing of foreign minister Tanaka and prolonged economic slowdown. USD/JPY support is seen at 132.50, 132.20 and 132.0. Resistance is eyed at 134.0, 134.60 and 135.0.  The pound soared nearly a full cent to a 3-week high of 1.4346 against the dollar and climbed one-third pence to a 1-week high of .6111 against the euro, cheered by the larger-than-expected surge in UK RPIX to 2.6% y/y in January from the previous 1.9%, thereby breaking above the Bank of England's 2.5% inflation target. The data suggests that as inflation rises because of strong domestic consumption, the BoE could begin raising interest rates soon since it has the highest rate of growth among all the G7 nations. Thus markets will be interested in seeing the BoE's quarterly inflation report due tomorrow for clues about its next monetary policy decision. The BoE Governor George said that January unexpected jump in inflation was likely  erratic  and it should be around 2.5% Bank's ceiling around two years. His comments could dampen the market expectations of rate rise. George said that he could not say the rate hike is imminent, but he is prepared to lower rates if needed. George also commented that the euro's levels are puzzlingly weak and he believed the single currency would strengthen in near future.   EUR/USD is trading around 87.60 underpinned by relief that Germany was not issued a formal warning about its budget deficit at the Eurozone finance ministers' meeting. Both Germany and Portugal vowed to keep their budget deficits below the EU's 3% of GDP limit. Analysts noted that because of the lack of a reprimand, Germany would not have to slash public spending that would boost growthThe single currency was under slight downward pressure from reports that European telecom Carrier 1 was filing for bankruptcy. Upside capped at 88.0, 88.50 and 89.0. Support holds at 87.0, 86.65 and 86.40.   Tomorrow's release of US retail sales is expected to show a decline to -0.3% in January from the previous -0.1% due to falling auto sales. However, retail sales ex-autos are forecasted to rise to 0.4% in January from -0.1% in December helped by strong general merchandise and apparel sales.  This week's other major US economic releases include retail sales, jobless claims, business inventories, import prices, PPI, industrial production and the University of Michigan confidence survey. Key Eurozone indicators consist of the ECB monthly bulletin, Dutch GDP, French employment, French trade balance, French industrial production and Italian industrial production. Noteworthy UK data releases are the labor market report and the Bank of England inflation forecast. Highlights from Japan comprise GDP, balance of payments, industrial production and Tokyo department store sales.    	[IMAGE] Audio Mkt. 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