[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 28, 7:00 PM: EUR/$..0.8684 $/JPY..133.45 GBP/$..1.4160 $/CHF..1.6984  Japanese Forex Trading Preview by Darko Pavlovic  At 12:00:00 AM Japan Feb Vehicle Sales (exp n/f, prev n/a)  The dollar fell to a one week low vs. the yen around 133.20 after Japan's January unemployment unexpectedly fell to 5.3%, for the fist time this year. Although positive data give some sign for optimism, the economic outlook still look very depressed. Also, nationwide core CPI fell 0.8% in January from a year earlier, 28th consecutive month of decline, showing that deflation deepens. Tokyo's core consumer prices fell 0.9% from a year ago, worse than economic forecast calling for a fall of 0.1% in January. January Japanese wage earners rose 0.2%, better than markets forecasts which estimated a fall of1.9%. Wage earner spending is an important gauge of personal consumption, which accounts for roughly 55% of Japan's GDP. Overnight, the yen was supported by the Bank of Japan's decision to increase its purchases of government bonds to 1 trillion yen per month from the current 800 billion yen. The central bank's action will help to improve the availability of credit ahead of the fiscal year end in March, although it may weaken the yen in the long run because of the rise in liquidity. Nevertheless, the Japanese currency is likely to depreciate in light of Japan's economic quandary and the government's half-hearted attempt to resolve the floundering economy, evidenced in the anti-deflation package released this week that markets for the most part deem ineffectual. Hayami had clearly indicated his desire that the government would inject funds into the ailing banking sector, but it remains to be seen whether the government will follow up its rhetoric with concrete acts or if their words will be nothing more than empty promises. Support holds at 133.20 and 133.0. Resistance is eyed at 134.0, 134.40 and 134.80.   US preliminary Q4 GDP overshot forecasts as it surged to 1.4% q/q from the previous 0.2%, posting its largest gain since Q4 '00. Meanwhile, US Q4 Final Sales climbed to 3.6% from the previous 2.5%. Among the reasons for the better-than-expected growth figures were significant gains in private and public spending. The greenback also cheered the release of the Chicago PMI that broke above the key 50-level into expansionary territory for the first time in 18 months to 53.1 in February from the previous month's 45.1.   EUR/USD is trading around 86.80 despite being weighed in European trading by the rise in Eurozone HICP to 2.7% y/y in January from the previous 2.5%. The figures prompted economists to expect the European Central Bank will not ease monetary policy when it meets next week, especially after yesterday's data showed that Eurozone M3 climbed to 8%. The single currency also was lifted by the news that Eurozone consumer prices are estimated to have fallen to 2.5% y/y in February compared with the previous 2.7%. German Chancellor Schroeder urged that German wage deals must be economically sensible, noting that a long standoff over wages or strikes would be "more than problematic" for recovery. Upside capped at 87.0, 87.40 and 87.80. Support is seen at 86.0, 85.50 and 85.0.   FX traders now await tomorrow's releases of manufacturing and consumer sentiment data for confirmation of the beginning of a turnaround in the US economy. Economists project that the ISM (formerly NAPM) purchasing managers survey for manufacturing will break above the key 50-level for the first time since July 2000 to 50.9 in February from the previous 49.9, confirming today's dramatic improvement in the Chicago PMI. As well, markets will assess the final February reading of the University of Michigan Sentiment survey that is expected to edge up to 91.2 in February from the preliminary estimate of 90.9, but fall compared with the previous month's 93.0.    	[IMAGE] Audio Mkt. Analysis USD Tempered by Greenspan's Cautiousness       Articles & Ideas  Koizumi Fails To Deliver    Goodbye Hope, Sayonara Yen       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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