[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 27, 7:00 PM: EUR/$..0.8655 $/JPY..134.22 GBP/$..1.4189 $/CHF..1.7051  Japanese Forex Trading Preview by Darko Pavlovic  At 12:00:00 AM Japan Jan Housing Starts y/y (exp -5%, prev -12.9%) At 6:50:00 PM Japan Jan Ind prod. y/y prel (exp n/f, prev -15.3%) Japan Jan Ind. Prod. m/m prel (exp 0.5%, prev 1.5%)  The yen regains some ground vs. the dollar, after falling to a 2-1/2 week low of 135, due to remarks from Vice Minister Kuroda's that Japanese currency is unlikely to drop sharply. The yen was hurt on markets' disappointment that the final release of Prime Minister Koizumi's anti-deflation package offered few real solutions to tackle the severe problems facing the economy. The package called the BoJ to further ease monetary policy, which the central bank may do on today's meeting. (Increase bond purchases to 1 trln yen from current 800 mln). The government did not call for mandatory injection of public funds into banks, but rather opted to use that choice in case of a substantial financial crisis. As far as bad debt loans are concerned, the government asks RCC to play key role in bad loans cleanup. All together, anti deflation program is a disappointment and even high ranking LDP member Taro Aso said that he thinks  measures are insufficient . Now all eyes are on BoJ policy meeting tomorrow and their possible decision regarding bond purchases. If the Central Bank give in to govt. request, the yen is likely to weaken further. The repatriation flows are probably the only reason what keeps the yen from falling to 138-140 levels vs. the dollar but in two weeks when most of the overseas funds are brought home the Japanese currency will likely resume its fall. Japan Jan prel. ind. output fell 1% from the previous month (and worse than forecasts of 0.6% gain) Jan prel inventories down 1.1% m/m . Feb manuf. output seen up 4.7% m/m March manuf. output seen down 0.9% m/m Japan's METI said ind. output continues to be in a declining trend. Resistance is eyed at 135.0, followed by the 3-year high of 135.15. Support holds at 134.0, 133.60 and 133.20.  Today, Fed Chairman Greenspan's rationale behind his slight optimism was due to inventory behavior as a key sign that the economy is at a turning point, since as the inventory cycle runs its course, consumer spending and income could receive a lift. Greenspan remarked that although spending will increase, an economic pick up might be more limited than compared with past recoveries. He expects Q4 productivity to be revised higher, and revealed that the Fed's central tendency for US real GDP is between 2.5-3.0% in 2002. The Fed's central tendency for the PCE Price Index is roughly 1.5% this year, and its central tendency for the US unemployment rate in 2002 is between 6.0-6.25%.  EUR/USD is trading around 86.60 after declining to a session low of 86.26 against the dollar, weighed in European trading by an unexpected decline in German Q4 GDP to -0.3% q/q from the previous -0.2%. The German data posted its first annual drop of 0.1% for the first time since 1996. In spite of the dismal data, German Finance Minister Eichel commented that the economy had already reached a bottom, and consequently, he believes that all indicators point to a surprisingly strong recovery. In spite of the slowdown in the Eurozone's largest economy, analysts do not believe the European Central Bank will change rates when it meets next week to determine monetary policy, especially in light of the rise in M3 to 8% from the previous 7.8%. Both the EU's Prodi and the EcoFin's Rato declared that the economy is in good shap and will recovery in the latter half of the year, thus negating the need for changes in current monetary and budget policies. Upside capped at 87.0, 87.40 and 87.80. Support is seen at 86.0, 85.50 and 85.0.   Currency markets will now look to tomorrow morning's releases of US GDP and Chicago PMI for further clues about the state of the US economy. Q4 '01 GDP is expected to be revised upwards to 0.8% from the advanced reading of 0.2%, boosted by stronger spending and helped by the better trade deficit. Later in the morning, traders will assess the Chicago PMI that will likely foretell of a breakthrough in the ISM PMI on Friday. Chicago PMI is forecasted to rise to 47.7 in February compared with the previous month's 45.1 as conditions in the Midwest manufacturing region continue to improve.    	[IMAGE] Audio Mkt. Analysis USD Tempered by Greenspan's Cautiousness       Articles & Ideas  Goodbye Hope, Sayonara Yen   Will Greenspan & Data Overcome Enronitis?       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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