The News Review:

- FREX-Dollar dips vs most major currencies in thin trade
- Year end festivities reverse steady slide in forex inflows
- Daily Forex Snapshots US Session: Quiet Before the Storm with 2009 …
- Japanese Yen: An Excessively Strong Currency Spells Recession
- What is Forex and how does it differ from the stock market?
- FREX-Dollar falls vs euro unchanged vs yen in thin trade

FREX-Dollar dips vs most major currencies in thin trade
Reuters 
data reinforces grim economic outlook * Euro steady Trichet offers little hint on ECB policy * Sterling on defensive parity with euro in sight (Updates with closing prices) By Steven C. Johnson NEW YRK Dec 24 (Reuters) – The dollar fell against mostmajor currencies on Wednesday as data on unemployment spendingand durable goods orders reinforced the bleak outlook for theU. economy in the year ahead. Trading desks were lightly staffed ahead of the Christmasholiday confining currencies to narrow ranges. Market reactionto the economic data was subdued.

Year end festivities reverse steady slide in forex inflows
Business Daily Africa Kenya 
Bankers said the two month upturn in foreign currency inflows is the result of Kenyans working abroad sending money to their relatives and friends for the festive season. “This is a seasonal trend diaspora remittances always peak towards the end of the year” said Mr Duncan Kinuthia a senior trader at the Bank of Africa. This surge in forex inflows however masks the economic hardship that Kenyans are facing abroad in the wake of the recent financial meltdown and the unravelling recession. The financial crisis — believed to be the worst since the great depression of the 1930s — heralds increased hardships for Kenyans living abroad especially in the US and Europe where a number of economies have descended into recession. Though generally taken to be a cagey lot a section of Kenyans living abroad who spoke to Business Daily said they expect stiffer competition for work in a shrinking job market rising inflation and falling investor confidence overseas to negatively impact on their ability to send money home in the new year. Similar views have been expressed by local forex dealers who say remittances meant for investment — estimated by World Bank to have hit an annual high of $1 billion last year — and which have been a key driver of the economy in the last five years have steeply declined. “Bank are able to tell whether forex inflows are for consumption or investment and at the moment what we are seeing more is consumption-driven inflows that are expected to fall after Christmas” said Mr Kinuthia.
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Daily Forex Snapshots US Session: Quiet Before the Storm with 2009 …
ACM 
The inconsistency in central bank commentary within the eurozone leaves the Euro somewhat exposed to further price correction if monetary policy action is inconsistent with market expectations. Many of the European and Asian currencies are subject to similar risks as the US and UK have been very aggressive in slashing rates to combat the crisis. Risk Disclaimer: Although every investment involves some degree of risk the risk of loss in trading off?exchange forex contracts can be substantial. Therefore if you are considering trading in this market you should be aware of the risks associated with this product so you can make an informed decision prior to investing. The material presented here is not to be construed as trading advice or strategy. ACMUSA makes a strong effort to use reliable expansive information but we make no representation that it is accurate or complete. In addition we have no obligation to notify you when opinions or data in this material change.

Japanese Yen: An Excessively Strong Currency Spells Recession
Seeking Alpha NY 
But history tells us that market-driven exchange rates can defy economic fundamentals leading to significant disruptions to the real economy. Exchange rates are known to be very sensitive to short term capital movements which are also known to swing wildly. This is why James Tobin suggested the "Tobin Tax" a minute tax on forex transactions which will yield the revenue that can be used to counteract any major disruptive exchange rate fluctuations. If exchange rates were determined only by current account transactions exchange rates would never go out of line with economic fundamentals and could therefore be left to the free market. Unfortunately these days short term capital movements easily dominate forex transactions originating from current account transactions. The counterpart of a very strong currency is weak currencies. Evidently currencies cannot be all weak or all strong at the same time.

What is Forex and how does it differ from the stock market?
Examiner.com 
In this article I will discuss some of the key differences between the two markets. Forex marketThe forex market has many names and can be referred to as the retail off-exchange foreign exchange forex or just simply FX market. It is extremely liquid with more than $4 trillion in volume traded every single day. The forex market is open 24 hours a day 5.

FREX-Dollar falls vs euro unchanged vs yen in thin trade
Reuters UK UK 
1 pct * BJ expected to ease policy further in January-March * Thin trading as many Asian European markets closed (Recasts adds comments changes byline and dateline previousTKY) By Vivianne Rodrigues NEW YRK Dec 26 (Reuters) – The dollar was lower againstthe euro and little changed versus the yen on Friday amid agrim outlook for the U. economy at the start of 2009 and astrading thins out ahead of the year end. The yen dipped against the euro in Asian trading after datashowing a sharp slowdown in Japanese inflation underscoredfears the world’s second-largest economy could sink back intodeflation next year. Friday was the last business day for many Japanese firmsthis year and their offices will remain shut until Jan.