The Tokyo session was a subdued affair with the majors trading in tight ranges within established parameters. Japanese Finance Minister Masajuro Shiokawa said next week’s first quarter gross domestic product figure would be severe and he was not very optimistic. These comments contradict recent polls and comments from Japanese institutions, which have been touting a headline figure of 1.9 per cent quarter-on-quarter. are predicting a reading of 1.5 per cent. The Nikkei closed down 0.34 per cent at 11,396.08. As per usual, Finance Ministry official Zembei Mizoguchi said he was still watching foreign exchange rates. In the absence of the Bank of Japan an uneasy calm continues to surround dollar/yen. The upside for the dollar seems very limited above Y125 in the short-term. Indeed Japanese exporters are camped out between Y125.30 and Y125.50. But, on the downside given that the threat of intervention remains, things are equally as limited. So the stalemate continues and looks set to do so until we see the Japanese GDP release or the result of Moody’s credit rating review. For euro/$ the majority of price action took place around $0.9200/10. Sell stops are reported to be building below $0.9180, but these never looked like being tested. Today’s edition of the Financial Times focuses on the problems of Italian car giant Fiat, the country’s largest industrial group. Speaking last night Pakistan President Pervez Musharraf made a hawkish speech on the current tensions with India.