[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  March 7, 7:00 PM: EUR/$..0.8812 $/JPY..127.70 GBP/$..1.4260 $/CHF..1.6697  Japanese Forex Trading Preview by Darko Pavlovic  At 6:50:00 PM Japan Q4 GDP q/q prel. (exp -1%, prev -2.1%) Japan Feb Domestic WPI y/y (exp -1.4%, prev -1.4%) Feb Overall WPI y/y (exp -0.1%, prev -0.6%) Private Consumption (exp 2.5%, prev -6.7%) Feb M2+CD y/y  (exp 3.5%, prev 3.6%) Japan Feb M2+CD m/m (exp 5%, prev 7%)  The yen rose to its highest levels since October 1998 vs. the dollar as the surge in Nikkei boosted demand for the currency. The yen rose more than 3% to 126.40 before falling to the current levels of 127.70. The Japanese currency has gained 5.7% since the end of January. Japan Oct-Dec GDP fell real 1.2% q/q (worse than expectations of a 0.9% contraction) showing economy shrank for the 3rd consecutive quarter. Japan Oct-Dec real GDP down annualized 4.5% Japan Feb M2+CD money supply up 3.7% y/y Dec nominal GDP down 1.2% q/q Oct-Dec private sector consumption up 1.9% q/q Oct-Dec housing investment down 0.2% q/q Oct-Dec private capex down 12% q/q Feb domestic WPI up 0.1% m/m Oct Dec public investment down 2% q/q Japan Oct-Dec GDP deflator down 1.2% y/y Feb domestic WPI down 1.3% y/y Oct-Dec external demand GDP contribution -0.1% domestic -1%. Current account surplus 2.9% of GDP in Oct-Dec Japan says govt 1% FY GDP forecast needs outcome of +1.6% in Jan-March Japan says calendar 2001 GDP down real 0.5% y/y Recent changes in the law concerning the short-selling of stocks, as well as increasing confidence of a US-led global economic recovery spurred the re-allocation of assets from the US to Japan and other markets. In addition, rumors that the Bank of Japan was in the market also fueled the currency's rise, in spite of warnings from the MoF's Kuroda and Muto that Japan would be monitoring for speculative and excessive moves. There is a possibility that MoF could warn of possible intervention if the yen continues to strengthen. Foreigners bought a net 114-bln yen in Japanese shares last week, the biggest amount in seven weeks. The currency also strengthened due to repatriation talks ahead of March 31, the end of fiscal year in Japan. For the past five weeks, Japanese investors have been net sellers of foreign securities. Japan's January index of leading economic indicators in January stood at 75.0, above the 50 mark, assuming the economy may hit bottom and improve in coming months. The lagging indicator for January came in at 16.7, while the coincident indicator was 33.3.Rating agency Fitch IBCA said Japan's near-term sovereign risks are small for government bonds and other debt securities issued or guaranteed by the government. The firm currently rates Japanese long-term bonds double A. But Fitch remains bearish, saying Japan's massive fiscal deficit remains on an "unsustainable medium-term path." PM Koizumi promised on Thursday to take all required steps to revive Japan's sagging economy, but added there are no ''quick fixes.'' ''There is no change in my policy that the economy will not recover without reform and to promote structural reforms,'' Koizumi said. Resistance seen at 128 and 128.50. Support at 127 and at the 200-day moving average of 125.0.  EUR/USD is trading around 88.10 after reaching a 1-1/2 month high of 88.39 cents, shrugging off the European Central Bank's decision this morning to keep rates steady at 3.25%. Markets had anticipated the central bank would take no action due to growing signs of Eurozone economic recovery and rising inflationary pressures. ECB President Duisenberg repeated that he expects inflation to fall below 2% "in the course of the coming months", helped by falling producer prices that will be reflected in CPI, and by moderation in M3 components. Nonetheless, he warned that for inflation to stay below its limit would depend on wage moderation, which is crucial to growth in jobs and stable prices. EUR/USD faces resistance at its 200-day moving average of 88.50. Next upward target is seen at 89.0 and 89.40. Support is viewed at 87.40, backed by 87.0 and 86.65.  The pound gained a cent to peak at a 1-1/2 week high of 1.4313 against the dollar, after dropping to a 2-session low of 1.4184 cents in reaction to the Bank of England's expected decision to keep rates unchanged at 4.0% this morning. On its part, the IMF recommended the Bank of England should be ready to adjust monetary policy in either direction, noting the need to monitor escalating home prices and consumer debt. The IMF forecasted UK growth in 2002 at 1.8%, noting the slowdown would be brief but subject to risks. Next key upward target is seen at the 200-day moving average of 1.4333, followed by 1.4370 and 1.440. Support holds at 1.420, 1.4170 and 1.4130.  In his testimony to the House of Representative, Greenspan altered his speech slightly as he stated that the US economic expansion is "well underway  and that an array of influences unique to the current cycle are likely to moderate their pace. He indicated encouraging signs that demand trends are strengthening but the size of the pickup is uncertain, especially since business investment elsewhere, including aircraft, will most likely remain weak. Thus he commented that a US recovery almost certainly would not match the average growth of past recessions, which have typically averaged around 7%.  Tomorrow's release of the key US employment labor report is expected to show the creation of 5K to 10K in non-farm payrolls, though some private forecasts expect the creation of 100K. The unemployment rate is expected to rise to 5.8% from 5.6%, while average hourly earnings are seen up 0.3% from 0.0%.Key Eurozone indicators include Italian GDP and Dutch CPI. Highlights from Japan comprise GDP, money supply and wholesale prices.    	[IMAGE] Audio Mkt. Analysis Yen Soars 3.5% vs USD       Articles & Ideas  Yen's March Madness   Will Dollar be Fuelled against the Euro?       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