[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 18, 7:00 PM: EUR/$..0.9026 $/JPY..121.11 GBP/$..1.4434 $/CHF..1.6370  Japanese Forex Trading Preview by Darko Pavlovic  No key data.   The dollar erased morning gains vs. the euro after the release of the October Philadelphia Fed Survey showed manufacturing dropped to  27.4 more than market expected. (Expectations were of  16). German Finance Minister Eichel said that Europe's biggest economy would likely expand 0.75%, less than half the official forecast six months ago. (previous expectations were at 2.1%). Analysts say that downgrade in German growth imminently lead to demote in European growth. The widely followed IFO survey, due on Friday, is another significant indicator of the economic outlook in Germany, the Euro-zone's biggest economy. The latest Reuters poll projects the IFO index will decline to a new 5-year low of 88.1 from the previous 89.5. The index was at its highest levels at 107.3 in November 1990, and its lowest point of 76.7 was reached in 1982. The single currency is also undermined by market perception that the ECB is behind the curve in cutting interest rates to promote growth. Today's release of the Bank's October Bulletin echoed last week's statements by Bank Chief Duisenberg that the Bank is closely monitoring monetary developments. It reiterated that monetary developments showed no risks of inflation but still called for vigilance. But even if increased hints of a near-term rate cut might appear to ease the euro's undecisiveness, the mounting jobless situation in the Eurozone is also taking its toll on the region's economy. More than 650,000 jobs were lost over the last couple of months. EUR/$ faces resistance at the congestion area of 90.70-75, followed by 91.35, which is the 20-day moving average . Support stands at 90 cents backed by 89.70 and 88.38, which is the 50% retracement of the rise from 83.90 to 93.35.  The Organization of Economic Cooperation and Development (OECD) said it would cut its 2002 growth forecast by half according to a preliminary report. US 2002 growth forecast revised to 1.3% from the earlier 3.1%, EU 2002 growth forecast revised to 1.5% from 2.7%, Japan 2002 growth down to -0.8% from earlier projections of 1.1%.   USD/JPY remained in mostly lethargic trade deviating little from its 200-day Moving Average of 121. The last 6 trading session had seen increasingly tight ranges reflecting the uncertainty on behalf of traders, reflecting risk aversion by Japanese traders to venture. The yen rose after the ex US Secretary of Treasury  Rubin said  a weak yen is not an answer to Japan's economic problems  and  solution lies in the area of structural reform, things like open credit markets and dealing with fiscal problems  Japanese Finance Minister Shiokawa said the yen is still strong and should weaken a bit more, which could hint further forex interventions ahead. Japanese govt. sold around $25 bln in yen in seven forex interventions to weaken its currency which is making exports less competitive and adding to more problems to already weak economy. The govt. plans to spend some 95 bln yen to boost subsidies for unemployed as part of its half-trillion yen spending for employment in the supplementary budget for fiscal 2001. Winter bonuses for Japanese employees are likely to decline on average by 3% , a fifth consecutive year of decline, which is likely to further weigh on spending. Two day meeting in Shanghai by ministers from 21 Pacific Rim economies will likely produce a  strong commitment  to free trade as a way to fight terrorism. Support starts at 120.80 backed by 120.50 and 120.20. Upside seen capped at 121.20-25, with follow-up buying testing 121.50 and 121.80.  Markets will consider tomorrow's release of the September Ifo survey from Germany (4 AM Eastern Time ,  8AM GMT) expected to drop to a fresh 5-year low of 88 from the previous 89.5. The report, this week's most important release from the Eurozone, should reflect a substantial period after the Sep 11 attacks, thus will likely show a fresh arrest of business confidence and expectations. 4   hours later, US markets will see the release of the September CPI, which is expected to rise by 0.6% from August's 0.1% with the increase mainly stemming from a temporary boost in gasoline prices. Also at 8:30 AM is the August trade data expected to show an improvement in the deficit to -$27 bln from -$27.9 .    	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