Forex: Wednesday’s review

Yesterday the euro rallied from a two-week low against the dollar as investors with 58 percent of the Greek bonds eligible have indicated they’ll participate in the so- called private-sector involvement of the nation’s bailout. The nation has said it will use collective action clauses to force holders of Greek-law bonds to accept the swap if it receives sufficient consent from investors.

The dollar rose against the yen after a report that the Federal Reserve is considering sterilized bond purchases. Brazil’s real tumbled against all of its most-traded counterparts as the government prepared measures to control capital inflows and stem the currency’s appreciation. The yen extended losses against the dollar to 0.2 percent to trade at 81.04 after the Wall Street Journal reported the U.S. central bank was considering a monetary program that would also subdue concern about future inflation. The program could see the Fed borrow an equivalent amount of money that it used to purchase the bonds, the report said.

EUR/USD: yesterday the pair fell showed new week’s low, but restored later.

GBP/USD: yesterday the pair traded in range $1.5695-$1.5750.

USD/JPY: yesterday the pair gain, closed day above Y81.00.

European events start at 0800GMT, the Swiss National bank publishes an Accountability Report for 2011. The ECB decision is due at 1245GMT with the usual press conference with the ECB President Mario Draghi following at 1330GMT. UK data includes Vehicle Licensing Statistics at 0930GMT, while core-European data rounds off at 1100GMT with German industrial output data. At 1230GMT, US initial jobless claims are expected to hold steady at 351,000, remaining in the very narrow range seen in the last three weeks. The weekly Bloomberg Comfort Index is due at 1445GMT and is followed at 1500GMT by Q4 services data and then at 1530GMT by Natural Gas Storage. Later data includes 1700GMT Flow of Funds and the 2130GMT release of M2 money supply.