[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 7, 7:00 PM: EUR/$..0.8702 $/JPY..133.92 GBP/$..1.4141 $/CHF..1.6914  Japanese Forex Trading Preview by Darko Pavlovic  At 12:00:00 AM Japan Dec Machinery orders m/m (exp -10%, prev 14.9%) At 6:50:00 PM Japan Jan Domestic WPI y/y (exp -1.3%, prev -1.4%)  Japan Jan Money Supply (exp 3.5%, prev 3.4%)  The dollar rose to 134 yen after January domestic WPI fell 0.2% m/m. The index was down 1.4% from the previous year, the 16 th consecutive month of year on year decline, adding to gloomy economic outlook. January M2+CD money supply rose 3.6% y/y. For the upcoming G7 meeting in Canada this weekend, some analysts think that Japan seems reluctant to weaken the yen significantly, given all the criticism by its Asian neighbors and US manufacturers that the weak yen is undermining their trade competitiveness. In the meantime, markets are also anxious about any monetary policy decision that might be reached at the ongoing Bank of Japan meeting. With deteriorating conditions, the BoJ is under considerable pressure to ease monetary policy to address the nation's economic quagmire. Since interest rates are nearly zero, the central bank may have to resort to increasing its purchases of JGBs from the current level of 800 billion yen to nearly 1 trillion yen in order to inject liquidity in markets and stabilize bond yields. Any such move would likely weaken the yen further, and thus skeptics believe the BoJ may refrain from such a drastic measure because of international pressure at the G7 meeting. PM Koizumi said on Thursday he was willing to continue with reforms despite the plunge in his cabinet's approval ratings.' I believe structural reform is needed to realize sustainable growth of the Japanese economy in the future,'' the PM said. Koizumi also repeated the government's plan to take brave measures to evade a financial crisis.  Support is viewed at 133.40, 133.0 and 132.65. Upside capped at 134.15, 134.40 and 134.80.  US Treasury Secretary O'Neill advocated that all G7 nations must donate to growth to increase living standards. He declared that the worst of the US economic slowdown is over and that there are more signs that a US economic recovery is present. Furthermore, O'Neill urged Japan to implement measures to get its economy on track, but declined to comment on the value of the Japanese yen.  EUR/USD is trading near its day's highs of 87.13 underpinned by ECB President Duisenberg's announcement of his retirement in July 2003, as well as optimism over the Eurozone's economic future. ECB's Duisenberg announced today his decision to step down early for reasons of transparency and to squash speculation, adding that it is a well-known fact that he would not stay for a full-term, but ruled out the possibility of retiring earlier than July 2003. He stressed that there is no connection between his announcement and a succession by serving Vice-President Noyer. German industrial orders rose 5.0% m/m in December from the previous 0.6%, fueling hopes that a recbound is in the works. Traders disregarded the European Central Bank's result this morning to hold rates steady at 3.25% because they are at an suitable level. ECB head Duisenberg commented that monetary developments do not create risks to price stability, but added that a reassessment may be needed if the economy recovers. ECB President Duisenberg once again reiterated that inflation should fall below 2% this year and stay there, though he foresaw inflation would be erratic in early 2002. Moreover, French Finance Minister Fabius confirmed that he lowered France's growth outlook in 2002 to 1.4-1.6% from an initial range of 2.25-2.5%, and projected GDP in 2003 between 2.8-3.2%. Resistance is seen at 87.20, 87.50 and 88.0. Support stands at 86.35, 86.0 and 85.55-- the 71.8% Fibonacci retracement of the move from 82.25 to 95.95.  The UK currency shrugged off the Bank of England's unsurprising decision this morning to leave rates unchanged at 4.0% in light of the UK's 2-speed economy characterized by robust consumer and housing spending that is being offset by a contracting manufacturing industry. Resistance is eyed at 1.4165, 1.420 and 1.4235. Support holds at 1.4060, 1.4040 and 1.40.   This week's remaining US indicator is wholesale trade. From the Eurozone, major economic releases consist of German industrial production and Dutch CPI. Highlights from Japan are money supply, wholesale prices and machinery orders. Over the weekend, currency traders will be carefully monitoring any developments at the G7 meeting in Toronto for any mention of the weak yen or strong dollar policies. ECB President Duisenberg indicated that the euro is unlikely to be mentioned in the G7 communique.    	[IMAGE] Audio Mkt. Analysis Euro Crawls Higher in Quiet Trading       Articles & Ideas  A Weak Yen Bites   Even Koizumi Drags Down the Yen       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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