[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 19, 7:00 PM: EUR/$..0.8763 $/JPY..133.42 GBP/$..1.4316 $/CHF..1.6875  Japanese Forex Trading Preview by Darko Pavlovic  No key data  The dollar is trading around 133.50 yen, easing after reaching one-week highs of 134.01 after Nikkei.net reported that BoJ Governor Hayami urged PM Koizumi to inject public funds into the banking system, and offered to ease monetary policy in return. Markets could regain optimism that there is still hope for Japan. Bush-Koizumi meeting did not produce any significant impact on forex, but disappointment that Japanese government did not come out with any major plan how to get the economy out of slump. The dollar hit one week high vs. the yen, after Finance Minister Shiokawa said that its not time yet to inject public funds into banks, further disappointing markets about any visible hope for reforms. Restoring the health of Japan's banking sector is one of the most important elements of Japan's structural reforms burdened with mounting bad debt loans. Additionally, head of the LDP task force on anti-deflation measures Aizawa called on the Bank of Japan to ease monetary policy when it meets next week by purchasing 200-300 billion yen worth of foreign bonds, increasing its purchases of JGBs and adopting an inflation target. Nevertheless, the injection of liquidity into markets is seen as having a reduced impact on the Japanese economy since banks have made their lending criteria stringent and only severely distressed firms are seeking capital. Finally, the losses in yen will be limited by repatriation flows to Japan ahead of the end of the fiscal year on March 31. During his speech to the Diet, Bush expressed firm support for PM Koizumi's reforms and called for a revival of the Japanese economy. He said how wide-ranging policies such as tax cuts; deregulation and efforts to improve the liquidity of bad loans had helped revive the U.S. economy. Some senior LDP members took Bush's comments as guidance where Japanese economy should proceed. Support is seen at 133.20, 133.0 and 132.50. Resistance is viewed 133.70, 134.0 and 134.45  EUR/USD is trading around 87.60 after rising to a 1-week high of 87.82 in tandem with the 1-yen rise in EUR/JPY to a 1-week high of 117.15. The euro reached new heights on weakness in the dollar and yen, boosted by the fourth consecutive monthly rise in the expectations index of the ZEW German sentiment survey by 14.3 points to 50.2. The current conditions component, however, fell 3.1 points to  87.0. The expectations component of the ZEW indicator for the Eurozone also climbed 13.5 points to 56.6 in a sharp contrast with the current conditions component which edged up a mere 0.2 points to  72.6. ECB council member Quaden said euro is undervalued would rise in medium term, preferred gradual trend. Quaden said euro interest rates are at appropriate level.The single currency was underpinned as well by the rise in Eurozone industrial production to 0.8% in December from the previous month's -0.8% that suggests a turnaround in the sector, even though the annual rate edged up only slightly to -4.1% from the previous -4.3% in a reflection of the still contracting industry. In an interview with Bloomberg, ECB council member Ernst Welteke expressed his concern about Eurozone inflation and money supply, thus appearing to play down the chances for an ECB rate cut since the previous cuts had most likely not yet filtered through the economy. Welteke also questioned Germany's aim of attaining 2.25% growth rate in 2003, since it would depend on the state of the US economy along with the wage round between trade unions and firms. Upside capped at 87.85, 88.10 and the 200-day moving average at 88.50. Support is viewed at 87.0, 86.80 and 86.45/50.  Economists forecasted that tomorrow's release of US CPI most likely rose for the first time in four months to 0.3% in January from the previous  0.2%, while core CPI edged up to 0.2% versus the previous 0.1%. They cited rising gasoline, medical care and housing costs as the reasons behind the climb in consumer prices.  This week's key US indicators consist of CPI, jobless claims, international trade, index of leading indicators, Philadelphia Fed survey and the Federal budget. Eurozone highlights include German GDP, Italy's ISAE consumer confidence survey, Spanish GDP, German CPI, Italian industrial orders, Euroarea balance of payments, Euroarea foreign trade, French GDP, Italian CPI and Spanish CPI. Major data releases from the UK comprise money supply, balance of trade, Bank of England's MPC minutes, and the CBI Industrial Trends survey. Key economic indicators from Japan are general household spending and the index of tertiary sector activity.    	[IMAGE] Audio Mkt. Analysis Yen Tumble Drives up EUR/USD       Articles & Ideas  JPY: Japan's Reform Dilemma   GBP: Old Lady Faces Old Problem       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
		[IMAGE][IMAGE] [IMAGE][IMAGE]	
		  This e-mail is never sent unsolicited. If you wish to unsubscribe from this or any other Forexnews.com newsletters, please click here .   Any opinions expressed by representatives of Forexnews.com or its affiliates as to the commentary, market information, and future direction of prices of specific currencies reflect the views of the individual analyst, and do not necessarily represent the views of Forexnews.com or its affiliates in any way. In no event shall Forexnews.com or its affiliates have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of information.