[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 24, 7:00 PM: EUR/$..0.8934 $/JPY..122.85 GBP/$..1.4282 $/CHF..1.6569  Japanese Forex Trading Preview by Darko Pavlovic  No key data.   The single currency strengthened vs. the dollar amid increased hope that the ECB would cut interest rates at tomorrow's meeting as inflation in Germany continues to fall.Today German Preliminary October CPI fell 0.3% m/m from the previous unchanged, and slipped to 2.0% y/y from the previous 2.1%- to mark its lowest level since August 2000, due to fall in oil prices and fuel. German Preliminary Harmonised CPI was down 0.3% in October vs. the previous unchanged, but held steady at 2.1% y/y. German Chancellor Schroeder asserted there is no economic crisis, and thus no reason to fear a recession, even though the prevailing fear is that Europe is on the brink of a serious downturn.  Today's German inflation data showing the national inflation rate drawing near to the ECB's 2.0% target is seen as improving the possibility the central bank will ease monetary policy in the future, but may not be the deciding factor in tomorrow's decision. In the latest Reuters poll, 27 out of 50 economists anticipate an ECB rate cut tomorrow, an increase from last week's 21. If the central bank fails to deliver a cut, market sentiment suggests the euro will be sold-off on disappointment that the ECB is more interested in falling inflation than to boost the growth. Resistance is seen at 89.44, 89.80 and 90.10. Initial support is viewed at the 89.0-cent figure, followed by 88.60 and 88.20.   The yen was undermined vs. the dollar after Japan's Vice Minister for Int. Affairs Kuroda said that  a yen appreciation would be completely inconsistent with fundamentals  sending Japanese currency to 122.95 but later retrace to around 122.50 levels. Yesterday's release of the Cabinet Office Survey compounded the pessimism, as it showed Japanese consumer confidence tumbled 4 points in September to 36.9 and its lowest level in three years on negative perceptions towards employment and income. The Japanese govt. will spend 350 bln yen of the fiscal 2001 supplementary budget on grants, in order to create more than half a million jobs by March 31, 2005. Japanese Finance Minister Shiokawa called for steeper spending cuts in fiscal year 2002 in order to keep the new issuance of government bonds from rising above 30 trln yen. The leader for New Conservative Party Noda expressed his disagreement with the govt. proposal to issue bonds convertible with state-held shares such as Nippon Telegraph and Telephone Corp and Japan Tobacco. Noda said that the govt. should take aggressive fiscal policy if necessary and not insist on restraining new bond issuance to 30 trln yen. PM Koizumi instructed his govt. to bring forward reform measures such as deregulation. Some analysts think that Koizumi is having problems with the other LDP faction led by former PM Hashimoto who are opposed to reform initiatives and he begins to lose his initial spirit in carrying out the pace and scope of proposed reforms. Resistance is eyed at 123.30, 123.50 and 123.85. Support stands at 122.45, 122.27 and 121.87.  The Fed Beige Book confirmed the US economic activity was debilitated in the period after the terrorist attacks. Especially noteworthy was the Fed's projection that US manufacturing would not turnaround until 2002 because of broad-based weakness, and also due to the longer-term effects on manufacturing from the September 11 attacks. Furthermore, the Fed said that security precautions after the attacks were affecting productivity.  The major indicators due from the US this week include the Employment Cost Index, durable goods, existing and new home sales, and the University of Michigan Confidence Survey. The ECI is forecasted to remain unchanged in Q3 at 0.9%, with slightly higher benefit costs offsetting the marginal decline in wages. However, durable goods are projected to plunge to  1.3% m/m from the previous 0.0%, or plummet to  16.4% y/y from the previous  11.5% as the terrorist attacks compounded the weakness already present in the economy by prompting companies to delay or cancel their purchases. From the Eurozone, key data due for release are German PPI, ISAE Consumer Confidence Survey, Italian Foreign trade, Euroarea M3 data and foreign trade. Markets anxiously await the ECB rate announcement on Thursday October 25. The remaining data release from the UK is the Q3 GDP. Highlights from Japan consist of consumer prices and commercial sales.    	[IMAGE] Audio Mkt. Analysis Euro Steadies Ahead of Thursday's ECB Meeting       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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