Japanese Preview ,
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   Interest Rates  US: Japan: Eurozone: UK: Switzerland:   1.75%  0.15%  3.=
25%  4.0%  1.25-2.25%        [IMAGE]   =09 [IMAGE]  Japanese Forex Trading =
Preview January 17, 7:00 PM: EUR/$..0.8812 $/JPY..132.46 GBP/$..1.4356 $/CH=
F..1.6654  Japanese Forex Trading Preview by Darko Pavlovic  At 11:30:00 PM=
 Japan Nov Ind Prod. final report (exp -1.8%, prev -0.2%)  The yen was hurt=
 vs. the dollar and the euro after Bank of Japan's January report stated th=
at the economy would continue to worsen, unchanged from its previous econom=
ic assessment. The yen ceded two-third yen to bottom at a 1-week low of 132=
.60 against the dollar and EUR/JPY rose to a session high of 116.79yen. On =
Friday, markets will scrutinize speeches of several government officials th=
at will likely influence the USD/JPY levels at the end of the week. Due to =
speak are: PM Koizumi, BoJ Governor Hayami, Finance Minister Shiokawa and E=
conomic Minister Takenaka. The yen got support after Vice Minister for Inte=
rnational Affairs Kuroda's stated that Japan has no intention to weaken the=
 yen, but rather upholds the view that FX rates should reflect fundamentals=
. Thus Kuroda explained that it was inevitable for a currency to fall if th=
e economy was weak. Separately, markets are anxious to hear any comments th=
at may emerge from US Treasury Secretary O'Neill's visit to Japan. The Fina=
ncial Services Agency announced that a record of 46 small banks and credit =
cooperatives went bankrupt last year due largely to strict inspections A to=
tal of nine banks and 37 credit cooperatives accounts for 15% of Japan's to=
tal credit cooperatives. PM Koizumi hinted Thursday the government could al=
ter the current taxation base for corporate and individual income taxes as =
a part of his structural reform initiatives. Koizumi added that reforming t=
he tax system is a key element of his structural reform plans. The Nippon R=
esearch Institute said Thursday its consumer sentiment index, an index on p=
rospective living conditions in the coming year, deteriorated further in De=
cember to a record high of 158, up 5 points from October. A higher reading =
indicates bigger concern among consumers about their situation. Resistance =
is eyed at 132.70, 133.0 and 133.35. Support holds at 131.80, 131.60 and 13=
1.30.   EUR/USD is trading around 88.12 marking the 50% Fibonacci retraceme=
nt of the move from 82.25 to 95.96 in today's US session.  The single curre=
ncy fell in the European session to a 3-week low of 87.92 cents after Germa=
n GDP posted a fall of 0.6% in 2001 vs. the previous year's 3% growth rate.=
 In addition, the single currency was pressured by market speculation that =
the EU would warn Germany and Portugal about their budget deficits rising t=
owards the 3% of GDP limit, in accordance with the Maastricht Treaty. In pa=
rticular, Germany is feeling the effect of falling growth and tax revenues =
along with the need to increase spending to address unemployment. German Fi=
nance Minister Eichel estimates the budget will comprise 2.5% of GDP this y=
ear, in contrast with research institutes that predict a range between 2.7-=
3.0%.Support is viewed at 88.0, 87.50 and 87.0. Resistance is seen at 88.50=
 and 90.0  Tomorrow's US International Trade balance is expected to ease to=
 -29.0 billion in November from the previous -29.4 bln due to a deceleratio=
n in both imports and exports as a consequence of the global slowdown. The =
University of Michigan confidence survey is forecasted to rise to 89.3 in t=
he preliminary January reading from the previous 88.8. Consequently the dol=
lar is likely to find support as long as the data meets or exceeds expectat=
ions. Finally, currency markets will be carefully monitoring tomorrow's mee=
ting between representatives of the National Association of Manufacturers a=
nd the US Treasury Undersecretary for International Affairs Taylor to discu=
ss the repercussions of the strong dollar policy. Last week NAM Vice Presid=
ent Vargo requested a meeting with the US Treasury to complain that the str=
ong dollar policy is hurting the exports and slowing down the recovery of t=
he US economy. Vargo thinks that the dollar is currently overvalued because=
 of its strength against the major currencies in spite of the US slowdown. =
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