The News Review:

- Forex – Dollar steady vs yen, euro in afternoon trade in Asia ahead…
- China warns foreign banks over forex dealings
- Forex – Euro surges after forecast-busting Ifo

Forex – Dollar steady vs yen, euro in afternoon trade in Asia ahead…
Forbes – Feb 26, 2008
On Friday the US Commerce Department will announce last month’s consumer spending, which accounts for more than two-thirds of gross domestic product. Before that, new homes sales for January will be out on Wednesday. ‘The currencies are stuck in a pretty narrow range. The currency market is focused on the US economic data,’ said David Mann, currency strategist at Standard Chartered (other-otc:.

China warns foreign banks over forex dealings
Forbes – Feb 26, 2008
‘Some foreign banks have ignored compliance requirements, are weak in disciplining themselves and are not checking the authenticity and implementation of China’s forex regulations,’ Deng Xianhong, vice head of the State Administration of Foreign Exchange (SAFE), said at a forum. ‘This kind of behavior not only increases risks of the banks themselves, but may result in higher systemic risk in the banking system and eventually hurt the economy and have negative effects. ‘ In June, SAFE announced that it had disciplined 29 banks, including 19 domestic banks, for assisting foreign speculative capital to enter China’s stock and real estate markets disguised as ‘trade or investment. ‘ It said the funds had a ‘definite’ impact on China’s macroeconomic conditions, pressuring the central bank’s monetary policy operations and the international balance of payments.

Forex – Euro surges after forecast-busting Ifo
Forbes – Feb 26, 2008
Earlier in the session, the euro had come under pressure on talk the Ifo would disappoint to the downside. In the event, the research institute revealed that its headline business climate index rose to 104. 1 in February from 103. 4 the previous month.