The News Review:

- WRLD FREX: Dollar Yen Hit By Global ptimism; Eye US GDP
- ANALYSIS-Israel rates could rise before forex purchases end
- Japan to impose cap on forex margin trade leverage

WRLD FREX: Dollar Yen Hit By Global ptimism; Eye US GDP
Wall Street Journal
–>WRLD FREX: Dollar Yen Hit By Global ptimism; Eye US GDP ArticleCommentsmore in. Sentiment was also helped by the success of the last of this week’s Treasury auctions Thursday. However analysts said that investors are unlikely to take large positions ahead of U. second-quarter gross domestic data due later in the day.
Related from Auctionsmonster: WRLD FREX: Dollar Shaken In Knee-Jerk Response To Tsy Auction

ANALYSIS-Israel rates could rise before forex purchases end
Forbes
The shekel reached 4. 25 per dollar in late April to completea 25 percent slide from its July 2008 peak. Since then theshekel has recouped 12 percent to 3. 80 and signs the forexpurchases might end would send the shekel soaring. DLLAR WULD DIVE Fischer surprised many market players when he said the Bankof Israel would end its programme of buying government bondswhile still buying foreign exchange. Since the forex programmebegan the market figured it would end first and the shekel haspartly gained on that view. A chief dealer at a large Israeli bank said that the markethas adjusted to life with the daily central bank buying and whenit stops — or as soon as an announcement it will stop comes –the dollar will dive.

Japan to impose cap on forex margin trade leverage
Reuters
Foreign exchange margin trading which enables investors tomake large bets with relatively small amounts of money hasboomed in the past few years as Japanese households dissatisfiedwith puny interest rates at home looked abroad for higheryields. Forex margin trading in Japan may account for 10 percent ofall yen spot trades conducted globally each day a Bank of Japanreport said last year. The Financial Services Agency said leverage would be cappedat 50 times starting Aug. 1 2010 and at 25 times starting ayear after that in line with a proposal it unveiled in late May. That will be a big cut for some brokers who offer leverage of400 times or more and for margin brokers in general. ut of more than 700 groups and individuals that sent inpublic comments in response to the FSA’s push to curb leveragearound 650 were opposed while 30 were in favour or wanted evenstronger regulation an FSA official told reporters.