[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 29, 7:00 PM: EUR/$..0.9048 $/JPY..121.89 GBP/$..1.4547 $/CHF..1.6271  Japanese Forex Trading Preview by Darko Pavlovic  At 12:00:00 AM Japan Sept Housing Starts y/y (exp n/f, prev 1.1%)  The yen rose to a one week high vs. the dollar of 121.90 on a sell-off in US stocks and pessimism about America's economic recovery. The Dow sank by 2.8% or 275 points to 9269 and NASDAQ dove 3.9% or 69 points to 1699, as stocks were weighed by Boeing Co. that lost a $200 billion US government contract for fighter planes, fears that Argentina will default on its debt, and on alarm about this week's forthcoming economic reports. Japanese economy was undermined after September unemployment rate rose to a record 5.3%, the biggest increase since March 1967 due to a weak manufacturing and retail sector. From a year earlier spending fell 1.3% the sixth consecutive drop from a year earlier and the propensity to consume ratio dropped 70.3% last month, the lowest level since November 2000. Economic conditions since September 11 has become severe in Japan. The BOJ decided to maintain interest rates near zero and keep a minimum of 6 trillion yen of reserves, while it also revised downwards its growth outlook to a range between -1.6% and -0.6% and its price outlook to a range between -1.3% and -0.9% for the current and next fiscal years because the economy is in a "severe" adjustment phase. The BoJ is likely to come under pressure to produce policy that will further ease deflationary pressures and provide a lift to the economy. The BoJ noted that Japan might not recover from present slump until 2003. Finance Minister Shiokawa suggested to the government to formulate a set of criteria which companies have little prospect for recovery and need restructuring. Economy Minister Takenaka said that he expects Japanese economy to contract about 1% in the fiscal year through March, which was in line with private think tanks forecast but worse than what government expect. Support is viewed at 121.50, 121.30 and 120.90. Upside capped at 122.50, 122.80 and 123.10.  The euro rallied two-third cents to reach a new 1-week high of 90.50 against the dollar, boosted by concern about the US economy and remarks from Bundesbank President Welteke that the ECB could cut rates if inflation slowed. In a speech Welteke asserted that "if, in the Governing Council of the ECB, we see the possibility of reducing interest rates further without compromising price stability, we will do so. Analysts are hopeful the European Central Bank will lower interest rates by at least 25-bp at their monetary policy meeting on November 8 to stimulate flagging European economic growth. Resistance is seen at, 90.85 and 91.15. Support holds at 89.50, 89.20 and 88.90.  The pound soared two-third cents to a 2-week high of 1.4550 against the dollar, uplifted by last week's better-than-expected GDP for Q3 to 0.6% q/q, as well as by speculation of M?flows. News that U.S. financial firm Babcock & Brown may bid for Britain's Railtrack and a weekend newspaper report that German media giant Bertelsmann was looking at Britain's Carlton Communications added to sterling's attractiveness. Resistance is eyed at 1.4575, 1.4590 and 1.4625. Support stands at 1.4430, 1.440 and 1.4340..  This week's economic highlights from the Eurozone comprise France's INSEE industry survey, PPI, CPI, French unemployment, and Euroarea PMI. In a recent Reuters poll, economists forecast Eurozone PMI will fall to 44.5 in October from 45.9 in September, marking the seventh straight month the index has remained below 50 and thereby indicating a contraction in manufacturing. A significant deterioration in the purchasing managers index will reinforce pressure on the European Central Bank to cut interest rates to promote growth in the weakening economies.    	[IMAGE] Audio Mkt. Analysis Dollar Marred Ahead of Key Data       Articles & Ideas  Speculative Flows Point to Further Euro Losses   ECB KEEPS RATES UNCHANGED AT 3.75%       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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