By Bridge News
London--March 6--The following is a summary of overnight moves since Europe's close, plus possible leaders for the session ahead:
KEY ISSUES:
* JPY stages modest recovery as Nikkei rallies
* USD also firmer, German February unemployment rumored to have risen
* GBP underpinned by strong BRC, Halifax surveys
* Fabius, Duisenberg, O'Neill all on the speaking slate

--The JPY and USD extended their modest recoveries overnight.
--USD/JPY slipped to a 4-day low of 118.55 as the Nikkei surged 365-points on optimism about an emergency package of measures due to be announced by the Japanese government later this week. Comments from finance minister Miyazawa and trade minister Hiranuma may also have weighed. Miyazawa said he was watching the JPY closely, while also denying press reports the government was considering a redenomination of the JPY. Hiranuma said there was no need to weaken the JPY intentionally. Against this, ex-EPA head and current PM advisor Sakaiya said another 10 JPY rise in the USD would help ease deflationary pressures. Further, the FT reports US's Xerox might at last sell its 25% stake in Fuji Xerox to Fuji Photo for as much as 1.5 billion USD.
--EUR/JPY retreated with USD/JPY to a 4-day low 109.95.
--EUR/USD also corrected down to a 5-day low of 0.9262 in the wake of Monday's better-than-forecast US data. The pair could find some support from news France Telecom is to launch a record multi-currency issue worth 15-16 billion USD and reports that France's Vivendi is close to selling its 55% stake in AOL France back to US's AOL Time Warner for 750 million EUR. German February unemployment data, due around 0855 GMT, are rumored to have risen an unadjusted 19,000. Otherwise, BBK's Stark speaks from 0945 GMT, French finance minister Fabius from 1045 GMT and ECB President Duisenberg from 1410 GMT. US Treasury Secretary O'Neill speaks from 1330 GMT, while revised US Q4 productivity data are due at the same time and January factory orders data ate 1500 GMT.
--USD/CHF rose in a reflection of EUR/USD to a 5-day high of 1.6566.
--Cable, meantime, dipped to 4-day low of 1.4640, but was cushioned by a 3.5% annual surge in the BRC's UK retail sales monitor for February, the highest reading since April 2000. Support could also come from a 1.6% monthly rise in the Halifax's UK house price survey for February, as well as reports UK's EMAP is close to selling its US arm for around 450-500 million GBP and that Dutch firm Kruidvat might buy Superdrug from UK's Kingfisher.