[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 22, 7:00 PM: EUR/$..0.8914 $/JPY..122.36 GBP/$..1.4244 $/CHF..1.6590  Japanese Forex Trading Preview by Darko Pavlovic  No key data.   The dollar rose to a nine week high vs. the yen and six week high vs. the euro, lifted by the rise in US stock market and optimism that the economy will rebound due to aggressive Fed rate cuts this year. The euro fell to $0.8897 against the dollar, weakened by last Friday's release of the German Ifo survey which tumbled to an 8-year low of 95.0 from 89.5 in its largest drop in 28 years. Today a number of German institutes admitted their conviction that Germany is on the brink of a recession and therefore they lowered the GDP forecasts for 2001 to 0.7% from 2.1% and for 2002 to 1.3% from 2.2%. The institutes also slashed Eurozone growth estimates for 2001 to 1.5% from 2.6% and for 2002 to 1.8% from 2.6%. In conclusion, the German institutes supported the ECB to cut rates by 25-bp to lower their rates to 3.5% by the end of the year in order to redress the economic contraction in the European nations. The euro will likely come under intense pressure this week due to market consternation that the European Central Bank is unlikely cut rates at their monetary policy meeting this Thursday. Finally, Welteke stated that the ECB does not pursue an exchange rate goal but rather stability, adding that central bankers "always like a strong external" exchange rate. Welteke remarked that the euro was undervalued and said the dollar and the pound are probably overvalued. Support is viewed at 89.0, 88.50 and 88.15. Resistance is seen at 90.20, 90.80 and 91.20.  The yen fell to a 9-week low of 122.58, amid pessimism towards Japan's economy after the release of two pieces of data that confirmed the deterioration in the Japanese economy. The tertiary sector index fell to -0.1% in August, as the all industries index also registered in negative territory at -0.2% and thus suggested GDP would be poor. Japan's trade surplus also declined 43.1% y/y to 3.305 trillion yen. Both pieces of data caused markets to refocus on Japan's weak fundamentals, which will put downward pressure on the yen in the near-term. The BoJ branch managers warned that regional economic situation in worsening led by slowdown in production and exports on capital spending, employment and income. The September 11 terrorist attack and mad cow disease have emerged as new factors weighting on the economy. Finance Minister Shiokawa said he will consider the proposal from New Komeito to reduce the amount of inheritance tax on smaller firms. Under new proposal, inheritors of small and midsize companies would pay only 50% of the tax on company assets such as land, buildings and machinery if they continue the business for five years. The FSA urged major banks to boost their capital and increase management transparency. The Resolution and Collection Corp. paid 1 yen per loan for 53.5% of the bad loans bought from city banks and others as of Sept 30. Since the RCC mostly pay below the market price, banks usually bring the loans they already gave up completely. Upside capped at 122.70, 123.0 and 123.30. Support stands at 121.20, 121.0 and 120.80.  The pound dropped over one cent to a fresh 9-week low of 1.4213 against the broadly stronger dollar rather than on intrinsic weakness in the UK currency as it traded near its session high of .6240 against the euro. Resistance is eyed at 1.4325, 1.4350 and 1.4420. Support stands at 1.4250, 1.4215 and 1.4185. The Swiss franc hit a 5-week low of 1.6640 against the dollar, but pared some loses in reaction of another confirmed anthrax case and possible anthrax-related fatalities. Upside capped at 1.6615, 1.6640 and 1.6670. Support holds at 1.6440, 1.6410 and 1.6380.  Dow Jones rose nearly 1.9% or 172 points to 9377, boosted by the better-than-expected earnings reports from 3M. NASDAQ rose by 2.2% or 36 points to 1708, as traders await reports from semiconductor firms Altera Corp. and Vitesse Semiconductor Corp after the closing bell, and other bellwethers like Compaq tomorrow.  The major indicators due from the US this week include the Employment Cost Index, durable goods, existing and new home sales, and the University of Michigan Confidence Survey. From the Eurozone, key data due for release are German PPI, Italian CPI, ISAE Industrial and Consumer Confidence Survey, French CPI, Italian Foreign trade, Euroarea M3 data and foreign trade. Markets await the ECB rate announcement on Thursday October 25, even though the central bank is unlikely to ease monetary policy. Noteworthy data from the UK comprise the CBI Industrial Trends Survey and Q3 GDP. Highlights from Japan consist of corporate service prices, consumer prices and commercial sales.    	[IMAGE] Audio Mkt. Analysis USD Extends Broad Rally to Pre Sep 11 Highs       Articles & Ideas  EURO: German IFO Will Remind ECB to Build Growth    Dollar Comeback Stopped by Risk of Terrorism       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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