[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 23, 7:00 PM: EUR/$..0.8902 $/JPY..122.55 GBP/$..1.4253 $/CHF..1.6599  Japanese Forex Trading Preview by Darko Pavlovic  At 1:30:00 AM Japan Sept Dpt. Store Sales (exp n/f, prev -0.3%) At 12:30:00 AM Japan Sept Supermarket Sales (exp n/f, prev -5.2%)  The dollar reached a two-month high vs. the yen of 123.03 but later in the trading pared its gains and is trading around 122.60 yen after newly reported anthrax cases. The yen weakened vs. the dollar after government survey released overnight showed Japanese consumer confidence tumbled 4 points to its lowest level in three years to 36.9 in September, amid negative perceptions regarding employment and income. In addition, the yen fell against the dollar and euro after a statement by Toyota VP Araki that the firm plans to exchange almost $20 billion worth of cash reserves from yen into other currencies in order to increase investment outside of Japan. A Toyota spokesman later stated that the reserves could vary depending on Toyota's investment plans. However, such a large transaction would further weaken the yen. The Finance Ministry revealed that trade surplus fell 43% in the first half of this compared with the same period last year, due to fluctuations in the business cycle and increased strength in other Asian countries. Also supporting the falling trade surplus is decline of the US economy, the biggest Japan export partner. The ruling party in Japan is planning to propose a plan to strengthen the role of the Resolution and Collection Corp. held up over the time limit of bad loans disposal: LDP is pressing for three years limit while Komeito party has advocated for five years deadline. Support stands at 122.45, 122.27 and 121.87. Upside capped at 123.30, 123.50 and 123.85.   The single currency benefited from more anthrax scare in the US, rising form a six-week lows to $0.8900 in spite of further decline in euro zone economies. Italian business confidence fell to its lowest level since 1962, to 84 in September from the previous 96. Also the euro was undermined by flow in insurance payments from European insurers to the US after the September 11 attacks. Traders are likely to sell the euro ahead of Thursday's ECB meeting because of its apparent reluctance to cut rates by 25-bp to shore up growth in the flagging European economies. But today's release of preliminary inflation from Germany and Italy indicated that price pressures are easing and will therefore give the ECB flexibility to reduce rates before the end of the year. Data from 3 German states suggested that the national inflation rate is falling towards the ECB's 2.0% target, while data from Italian cities suggested the overall Italian inflation rate is on course to slip to 2.5% in October from the prior month's 2.6%. Resistance is seen at 89.20, 89.55 and 89.80. Support is viewed at 88.60, 88.20 and 87.80.  The swiss franc fell vs. the dollar but later recovered due to anthrax after the European Union defined limits on the use of Swiss financial aid to bail out SwissAir in accordance with the EU's transportation agreements. Overnight, the Swiss franc plunged to a new 6-week low of 1.6682 as markets mulled the Swiss franc's image of safe heaven currency that was tarnished by the SwissAir insolvency. Any subsequent appreciation in the Swiss franc arising from safe-haven flows will likely expedite further rate cuts. The SNB has already eased rates twice to around 2.25%, and economists forecast another 50-bp reduction in store before December to bring its target rate down to 1.75%. Support is seen at 1.6565 and 1.6525. Upside capped at 1.6640, 1.670 and 1.6740.   The White House's Hubbard noted that it is too soon to say that the US economy is in a recession, even though Q3 and Q4 GDP are "particularly adversely affected" by the September 11 attacks which could have a potential long-lasting effect on business and consumers. Therefore, while the probability of a US recession has risen "substantially" since the attacks, Hubbard tempered his statement by remarking that any US economic downturn will likely be "quite modest". US stocks retreated from positive territory after news of more anthrax cases, sending the Dow down 36 points to 9340 and NASDAQ down 3 points to 1704.      	[IMAGE] Audio Mkt. Analysis Dollar Gives Back Gains After More Anthrax       Articles & Ideas  The US Dollar: Before and after the Crisis   EURO: German IFO Will Remind ECB to Build Growth       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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