The United Arab Emirates central bank has made no decision yet on diversifying its foreign exchange reserves and the current USD ratio is appropriate, the bank’s Governor Sultan Nasser Al Suweidi said yesterday.

However, he told Reuters in an interview that a shift remains the bank’s long-term objective.
“The board is making the decision but it has not taken the decision yet,” he said on the sidelines of a conference in London.
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The USD drifted higher against major rivals as dealers monitored the outlook for interest rates, while the GBP also weakened on news that a Bank of England policymaker had suddenly died.

The Euro fell to 1.2637 dollars in early European trading from 1.2659 dollars late on Wednesday in New York.

The USD climbed to 115.14 yen from 114.86 yen on Wednesday.

In Asian trading, the USD had extended losses ignited Wednesday after European Central Bank chief Jean-Claude Trichet raised expectations for further rate increases in the eurozone.
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The Swedish central bank has said it had decided to hike its leading interest rate by 0.25 percentage points, taking the repo rate to 2.25 percent to help keep a lid on inflationary pressures.

The Riksbank’s goal is to hold inflation to less than 2.0 percent. Inflation has risen over the past year and stood at 1.6 percent in May, but was projected to rise further over the next two years, the bank noted.

“To ensure an inflation rate close to target and contribute to a balanced development of the real economy, monetary policy should become gradually less expansionary,” the bank said Tuesday, motivating its decision.
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The New Zealand dollar NZD fell to a 10-week low against the USD on Thursday, after data showed the country’s current account deficit blew out to record levels in the first quarter.

Long standing concerns about the size and sustainability of New Zealand’s current account deficit were rekindled by the worse-than-expected data.

“The current account deficit is 9.3 percent of GDP, much too high for the market’s liking, particularly as attracting capital flows is becoming more difficult,” said Ashley Davies, currency strategist at UBS in Singapore.
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Forty percent of Japanese questioned think embattled central bank chief Toshihiko Fukui should resign over a scandal in which he invested in a controversial fund, according to a new poll.

The Bank of Japan governor has admitted keeping an investment in the fund of high-profile investor Yoshiaki Murakami, who was arrested earlier this month on allegations of insider trading.

Forty percent believe that Fukui should resign over the scandal, said a survey carried out jointly by the Yomiuri Shimbun, Japan’s best-read daily, and NTT Resonant Inc., an Internet service company.
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Below you’ll find the second and last part of our Forex Technical Analysis Introduction.

Moving Averages
A moving average, in technical analysis, is the most used indicators in a family of statistical techniques to analyze time series data.

A moving average series in Forex trading can be calculated for any time series, but is most often applied to currency prices or trading volumes. Moving averages are used to smooth out short-term fluctuations, thus highlighting longer-term trends or cycles. The threshold between short-term and long-term depends on the application, and the parameters of the moving average will be set accordingly.

Simple moving average
A simple moving average is the unweighted mean of the previous n data points. For example, a 10-day simple moving average of closing price is the mean of the previous 10 days’ closing prices.
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Every Forex Trader will have their own strategies in order to help them make money in the Forex market. We could easily divide the Forex traders in 2 major categories. First, the traders who will analyze all the related economic news to help them forecast the direction of the market commonly know as Fundamental Analysis.
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The USD extended losses on Wednesday after a higher-than-expected reading of U.S. inflation for May did little to dispel uncertainty about interest rate increases beyond an expected hike in late June.

After seven consecutive sessions of gains in the dollar against the Euro, traders trimmed their positions after the Consumer Price Index data cemented the chances of a June Fed rate hike but shed little light on policy moves beyond that.
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Bank of Japan governor Toshihiko Fukui has opened a policy meeting with a cloud hanging over him in a scandal seen as weakening his credibility as he moves to end five years of zero-interest rates.

Opposition lawmakers have called for Fukui’s resignation, saying he was unethical to have kept an investment in the fund of controversial manager Yoshiaki Murakami who was arrested on insider trading charges.
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British 12-month inflation rose to 2.2 percent in May from 2.0 percent in April, lifted by soaring domestic energy bills and rising motor fuel prices, official data showed.

May’s figure breached the Bank of England’s government-set target of 2.0 percent — and was the highest reading since October 2005 when it stood at 2.3 percent.
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British wholesale prices, or the cost of goods at the factory gate, rose by 0.3 percent in May from April.
On a 12-month basis output prices rose by 3.0 percent, the Office for National Statistics said Monday. The annual rise was the biggest since September last year.
The data was in line with analysts’ consensus forecast of a 0.3-percent month-on-month rise and yearly increase of 2.9 percent.
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The US trade deficit widened 2.5 percent in April to 63.4 billion dollars as imports of oil and cheap goods from China rose, the government said.
The US trade performance was better than expected by economists, who had predicted an April figure of 65.0 billion dollars. The March deficit came to a revised 61.9 billion dollars.
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Japan’s government has urged the central bank to maintain zero interest rates to allow the economy to recover as fears of a slowdown in US growth battered global stock markets.

“We hope the Bank of Japan will support the economy with its monetary policies,” Chief Cabinet Secretary Shinzo Abe told reporters.
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South Korea’s central bank has raised its key interest rate in a bid to head off mounting inflationary pressure amid high oil prices and an ongoing economic expansion.
The Bank of Korea raised the June target for the inter-bank overnight call rate by 0.25 percentage points to 4.25 percent after keeping the rate unchanged for three consecutive months.
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On Thursday, June 8, Russia became the latest in the list of countries that shifted a part of its Central Bank reserves from the USD. Sergei Ignatyev, chairman of the Central Bank, said that only 50 percent of its reserves are now held in dollars, with 40 percent in Euro and the rest in GBP. Earlier it was believed that just 25-30 percent of Russia’s reserves were held in Euros, with virtually all the rest held in dollars.
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