8 October 2001, 10:08  Daily Open Japanese Trading Preview by Stacey Yang

No key data today.
The dollar is lower across-the-board after the US executed airs strikes on Afghanistan for harboring the alleged mastermind of the September 11 terrorist attacks on US soil. Weighing on the greenback as well was Friday's sharp plunge in payrolls of 199k from the previous drop of 84k, due to the massive layoffs as a result of the attacks that interrupted business activity. The Swiss franc will likely lead the European currencies higher as investors seek safe-haven for their assets. Nonetheless, trading is likely to be thin as markets in Japan and the US are closed tomorrow for holidays.
According to Japanese Finance Minister Shiokawa, the G7 did not discuss coordinated intervention in FX markets, but stated "We will continue to monitor exchange markets closely and cooperate as appropriate". Japanese monetary officials also commented that the G7 reportedly gave their approval of Japan's aggressive intervention in September to weaken the yen. Shiokawa also indicated Japan would continue to intervene if necessary, but most likely on its own. Meanwhile, Bundesbank President Welteke remarked over the weekend that the European Central Bank would intervene on behalf of the Bank of Japan, provided such action did not affect the EUR/USD rate. Finally, Bank of Japan Governor Hayami said the central bank would continue to inject funds in the market as needed.
The G7 focused instead on battling terrorism by disrupting their financial resources. On the economic front, the G7 pledged to promote global growth and ensure the stability of financial markets by providing liquidity and stimulus measures appropriate for each nation's situation.
This week's key US economic indicators include the PPI, retail sales and the University of Michigan Sentiment Survey. From the Eurozone, major data due for release consists of German industrial production, unemployment, foreign trade, German CPI and HICP, and French GDP and CPI. Analysts do not believe the European Central Bank will reduce interest rates at their monetary policy meeting on Thursday, October 11.

© 1999-2022 Forex EuroClub
All rights reserved