The News Review:

- FREX-Yen strengthens NZ dollar firm after rate cut
- FREX-Euro hits 2-mth high vs yen as concerns grow over QE
- Risk control No 1 concern for China’s forex management
- Weekly Technical Strategist: EURUSD & GBPUSD
- Boosting forex reserves
- World Bank proposes forex use to tide over recession

FREX-Yen strengthens NZ dollar firm after rate cut
Reuters
The yen edged up after the data was released althoughtraders said the market’s view on the economy was unchanged. “The GDP data was a bit better than expected but it didn’thave much impact on the forex market” Kubo said. But the yen gathered steam as the session wore on. The dollar fell as low as 95. 95 yen on trading platform EBSits weakest in two weeks and was down 1.

FREX-Euro hits 2-mth high vs yen as concerns grow over QE
Reuters
The single currency pared earlier gains against the dollarand the Swiss franc but remained broadly supported by the SNB’saction to weaken the Swiss franc by buying euros and dollars onThursday with traders anticipating further such moves. The SNB said on Thursday it would buy foreign currencies andbonds — so called “quantitative easing” — as the country facesits worst recession in over three decades. And after a similar move by the Bank of England last weekmarkets are wondering who might be next. “People are starting to think a lot more about what QE meansfor currencies so far we’ve only had the Bank of England andthe SNB explicity engage in it and the currencies have done verybadly said Adarsh Sinha a currency strategist at BarclaysCapital.
Related from Yolog: Euro Reaches Three-Month Low on Eastern Europe Banking Concern

Risk control No 1 concern for China’s forex management
China Daily
“When managing the foreign exchange reserves China will stick to the principle of ’safety liquidity and appreciation’” said Wen adding that China will also take the stability of the global financial market into consideration. China’s foreign exchange reserves hit a record $1. 95 trillion at the end of 2008 the largest in the world and far exceeding those of Japan the second-largest foreign exchange holder with $1.

Weekly Technical Strategist: EURUSD & GBPUSD
Inside Futures
com a technical research website. He has been trading and analyzing the foreign exchange market for the past 7 years. He formerly traded stocks before crossing over to the forex market where he worked for FXInstructor LLC as a technical analyst and head of research before Joining FXTechstrategy. Mohammed has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine The Forex Journal Magazine and The International Business Times etc. com he writes daily and weekly technical commentaries on currencies and commodities which are offered to its clients.

Boosting forex reserves
Business Line
Kaustuban CoimbatoreCapital flows had been our mainstay these last few years. Unfortunately the worldwide recession has cried a halt to it. Whenever the private sector is unable to attract funds the Government willy-nilly has to pitch in. There is no reason why the Government cannot go for sovereign borrowing though thanks to the poor credit rating the cost is bound to be high.

World Bank proposes forex use to tide over recession
Indian Express
“In the present scenario when we are witnessing deflationary trends in the domestic economy using forex reserves to trigger demand and growth will be a good step. We can also overrule the possibility of rise in Inflation due to this money supply in this environment. In short-term the country will see some depletion in reserves but in the long-term as the economies around the world revive India will be poised to export more and generate more forex revenues” Lin said at a press conference here on Friday. “The downturn is the cause of excess capacity in the system developing countries were innocent but will be hurt seriously and poverty unemployment will be big issues” he said.