U.S. Market March 01, 2001

The feature heading into the day was the key money market rate cut in Japan from 0.25 pct. to 0.15 pct. Equities in Tokyo had sunk to 15 year lows.

Off this, usd/jpy made two week highs trading at the 117.50 area. In the Euro, the market broke through the recent triple high .9200 - .9220 level and sustained it with a firm Euro/Jpy attaining a high at 108.55. Meanwhile, Mr. Greenspan's testimony before Congress was mixed overall. It would seem that the further softening in rates in Japan, and the general uncertainty regarding the general health of the near term U.S. picture, is forcing the Euro higher. We may see a temporary halt to today's trend ahead of the Thursday ECB meeting. However, with no surprises there, it would seem that there are technical and fundamental elements at work which may now be forming the foundation for some type of a run on the upside in the euro and euro/jpy.

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