Forex: Thursday’s review

Yesterday the euro rose after Spain sold more than its maximum target at a debt auction, easing concern the region’s debt crisis is worsening. The euro pared losses versus the yen after a report showed European manufacturing and service industries contracted less this month than economists forecast.

The euro rallied earlier after the currency’s 14-day relative strength index against the dollar fell to 29 yesterday, below the 30-level that some traders see as a sign a currency may be poised to reverse direction.

Gains in the euro were capped as speculation European leaders aren’t doing enough to resolve the debt crisis damped demand for the region’s currency.

The Swiss franc strengthened against all its major counterparts after the central bank refrained from introducing new measures to weaken the currency at a policy meeting.

The franc gained the most in eight weeks against the euro after Switzerland’s central bank left its limit on the currency unchanged, resisting pressure from exporters to further curb its strength as officials take time to assess deflation risks.

The dollar dropped as U.S. economic data showed a quickening recovery and European funding stress eased, damping demand for the safety of the U.S. currency.

EUR/USD: yesterday the pair was restored.

GBP/USD: yesterday the pair gain on a floor of a figure.

USD/JPY: yesterday the pair fell.

On Friday at 0830GMT when ECB President Mario Draghi chairs a panel on monetary policy and payment systems, with Bank of England Governor Mervyn King and former Fed vice chairman Donald Kohn. At 0900GMT, ECB Governing Council member Ewald Nowotny gives a press conference on financial stability, in Vienna.EMU data at 1000GMT sees construction output and the trade balance for october as well as Q3 labour costs data.US data starts at 1330, when consumer prices are expected to hold steady in November after falling in October. At 1615GMT, Chicago Federal Reserve Bank President Charles Evans takes part on a panel at the EC2 Conference

on econometric tools for policy making after the crisis, in Florence, Italy, while at 1700GMT, the Dallas Fed President delivers a speech on

the economic outlook at the Austin Chamber of Commerce 2012 Economic Forecast Luncheon in Austin.