His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.

There has been a shift this week towards expectations of another U.S. interest rate rise in March -- the interest rate differential is there and it is helping the dollar.

I think it's inevitable that Governor Fukui will indicate we're that bit closer to the end of quantitative easing but I still think the message will be one of relative caution.

The market has already come to the conclusion that the medium-term impact of Katrina will be negligible if not net positive, therefore weak figures in the near term won't have any bearing. The market is now looking for a Fed move next week.

Even with interest rates going up, housing markets will remain healthy going into 2006.

The yen is being supported by a liquidation of short positions.