[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:   2.5%  0.15%  3.75%  4.5%  1.75-2.75%       [IMAGE] 	 [IMAGE]  Japanese Forex Trading Preview  October 25, 7:00 PM: EUR/$..0.8922 $/JPY..122.88 GBP/$..1.4247 $/CHF..1.6530  Japanese Forex Trading Preview by Darko Pavlovic  At 7:50:00 PM Japan Sept Retail Sales (exp -2.5%, prev -3.4%) At 7:00:00 PM Japan Sept CPI m/m (exp -0.6%, prev 0.4%) Japan Sept CPI y/y (exp -0.8%, prev -0.7%)  The dollar ended slightly higher against the major currencies after being weighted by weak US data that put in the shade the market disappointment about the ECB decision not to cut rates. The first piece of data that undermined market's confidence in the dollar was the steepest plunge in durable goods orders in nine months to 8.5% m/m in September from the previous 0.5%. The next key indicator that put further downward pressure on the dollar was the greater-than-expected rise in US jobless claims to 504k from the previous revised 496k. The US 4-week average soared to its highest level since March 1991 to 505k in the week of Oct. 20 from the previous revised 493k. Finally toppling the greenback was the 11.7% fall in US existing home sales to 4.89 mln from the previous 5.5 mln. The National Association of Realtors explained that the largest decline in home sales since April 1995 was due primarily to the September 11 attacks. The ECB decision to hold rates steady at 3.75% disappointed markets as some expected a rate cut due to falling inflation in the Euro-zone. Bundesbank head Welteke explained today's decision that the ECB doubted a marginal rate cut would have any significant economic impact, and noted further that a panic reaction by the ECB would create uncertainty  The single currency earlier shrugged off the rise in Italian consumer confidence to 124.3 in October from the previous 121.2. Nonetheless, the ISAE, who conducted the sentiment survey, said "unfavorable expectations are emerging on the general economic situation, on unemployment and on intentions to purchase durables". Initial support is viewed at the 89.0-cent figure, followed by 88.60 and 88.20. Resistance is seen at 89.80, 90.10 and 90.40.  The pound shot up nearly a full cent to a 3-session high of 1.4327 against the dollar on gloomy US economic reports. Markets will tune in to tomorrow's release of Q3 GDP, which is forecasted to grow at 0.4% q/q and 2.0% y/y, indicating that the UK economy is stronger than those of other nations, and the confirmation of such will bolster the pound. Support stands at 1.4230, 1.420 and 1.4160. Upside capped at 1.4330, 1.4350 and 1.4387.  The yen recovered against the dollar after falling to a 11-week low of 123.36 against, due to comments from Japan's Vice Minister for International Affairs Kuroda who said that a yen appreciation would be completely inconsistent with fundamentals, as well as doubts that the Japanese government could cap its new government bond issuances below 30 trln yen by slashing spending in FY 2002 since revenues were declining. The BoJ Governor Hayami said that central bank's policy board outlook and risk assessment of the economy and prices, which are due next Tuesday, will include the fiscal 01 and 02 outlooks. The central bank started releasing six-month outlooks in October 2000. Hayami also noted that Japan is not deflationary spiral but stressed that in order to prevent a prolonged fall in prices the key is boosting private demand and progress in structural reforms. Finance Minister Shiokawa said that in order to keep new issuance of govt. bonds from rising above 30 trln yen there has to be steeper cuts in fiscal 2002 budget. Although the approval rate for PM Koizumi is still holding around 80% the criticism from his own LDP party and dissatisfaction about the proposed economic reforms is raising. Some fraction leaders including ex PM Hashimoto are unhappy with govt. proposed plan to curb bond issuance to 30 trln yen and the way how PM is handling the campaign for structural reforms. Resistance is eyed at 122.90 and 123.35 and 123.65. Support holds at 122.32, 122.0 and 121.60.   The major indicators due from the US this week include new home sales and the final October University of Michigan Confidence Survey, which is forecasted to wane further to 82.7 from the preliminary October reading of 83.4 because of anxieties about the US' economic woes and terrorism.    	[IMAGE] Audio Mkt. Analysis USD Retraces Losses on Stock Market Rebound       Articles & Ideas  Speculative Flows Point to Further Euro Losses   ECB KEEPS RATES UNCHANGED AT 3.75%       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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