[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]  JPY Up On Repatriation Flows, USD Awaits Manufacturing ISM  March 1, 7:00 AM: EUR/$..0.8675 $/JPY..133.15 GBP/$..1.4206 $/CHF..1.7009  JPY Up On Repatriation Flows, USD Awaits Manufacturing ISM by Jes Black  At 8:30:00 AM US Jan Personal Consumption (exp 0.2%, prev -0.2%) US Jan Personal Income (exp 0.1%, prev 0.4%) At 9:45:00 AM US Feb U. of Michigan Sent. Final (exp 91.5, prev 93) At 10:00:00 AM US Feb ISM (formelrly NAPM) (exp 50.6, prev 49.9) US Jan Construction Spending (exp 0.1%, prev 0.2%)  The dollar fell back to one-week lows against the yen but remained rangebound against the European majors in Friday morning trading ahead of key US data. Upbeat manufacturing figures from the Eurozone failed to lift the single currency, but a surge in UK PMI pushed sterling higher across the board. Meanwhile, repatriation fears kept the yen from falling, but this seasonal advantage should give way to further weakness in the weeks ahead.   Today's data from the US is expected to show manufacturing expanded in February for the first time in over 1-1/2 years. The Institute for Supply Management's (ISM) closely watched headline index is forecast to rise above the 50-mark, indicating expansion and would add to yesterday's upbeat revision to Q4 GDP which overshot forecasts as it surged to 1.4% q/q from the previous 0.2%, posting its largest gain since Q4 '00.  Traders feel that at some point the good US economic data should push EUR/USD below 86 cents to test previous 6-month low of 85.63. But despite the upbeat forecasts, Enronitis and stock market valuations could keep the dollar under wraps.   Also to be released today is the final reading of February U. Mich sentiment which is expected to rise from the preliminary release of 90.9 to 91.2, but remain below January's 93.0. US income and expenditure growth is expected to continue in January, but at a slower pace.  EUR/USD held steady around 86.80 after Eurozone PMI rose to 48.6 in February, more than the anticipated 47.2 and above a revised 46.3 in January. The data shows an economic recovery is still on the way. However, more hefty gains will be needed to drive the figure above the key 50 mark. In contrast, traders expect to see the US ISM (NAPM) rise today to 50.6 in February from 49.9, putting it back into expansion. Sentiment is mixed however and only a move through 86.30/15 on its way to 85.63 low would put the euro back in full bear mode. Support is seen at 86.30, 86.15, and 85.60. Resistance is viewed at 86.60, 87.10, and 87.85.  Other data showed French consumer confidence took a step backwards in February to minus 15 from minus 12, ending four consecutive months of gains. However, the EUR/USD stayed steady around a day's low of 86.67 after the news. Dealers do not see it as a sign of reversal in the improving trend. Recall that US Conference Board Consumer Confidence tumbled to 94.1 in February from the previous revised 97.8, below forecasts calling for a decline to 96.8.   GBP/USD added to Friday's recovery from an overnight 3-week low of 1.4110 and reached a high of 1.4218 after UK February manufacturing PMI unexpectedly rose above the 50-mark indicating manufacturing has recovered from yearlong contraction. However, sterling is likely to remain weakened by EMU expectations and the fact that BoE Governor George again tried to talk down the currency since sterling strength exacerbates the imbalances the central bank would like to correct. The bank feels a downward correction would help the BoE do its job to get the economy on one track again.  The pound is also likely to remain pressured by selling from traders who had expected that the UK would soon begin to tighten monetary policy, thereby making rates more favorable there than elsewhere among the G7 nations. But it now appears GBP will not benefit from higher interest rates since George clarified that people "should be careful how much weight they put on the steepness of this curve", referring to short sterling rate futures. GBP/USD resistance seen at 1.4240. Support at 1.4180. Sterling also rises to day's high of 61.07 pence vs. Euro, thereby not allowing EUR/USD to gain.  USD/JPY encountered further weakness as pressure builds ahead of year end book closings on March 31. Dealers now say that another wave of repatriation could be in store as investors fear a credit crunch at the end of March 31 FY-book closing. Japanese repatriation flows in January brought an enormous 3.3 trillion yen back home. This was a major reason the yen was able to fend off further losses. But with repatriation poised to slow near the end of March and net outward investment to resume thereafter dealers expect to see further yen weakness in the weeks to come allowing USD/JPY to target 140 once the 135.00/20 major resistance band is broken. Upside capped at 133.70, 134.00/10, 134.70/85 and strong resistance at 135.15. Support holds at 133.50, 133.20, 133.0 and 132.50.  Also giving yen support were comments from Japanese Economics Minister Takenaka that it may be necessary to consider taking more steps to further stabilize Japan's financial system before the end of the fiscal year. Takenaka specified that it would intermittently take steps if needed in the run up to the end of the current fiscal year on March 31. However, he did not commit to the injecting of public funds into major commercial banks to help them deal with the massive bad loans on their books. This is seen as a necessary step for Japan to move ahead with reforms.  	[IMAGE] Audio Mkt. 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