Forex: Wednesday’s review

Yesterday the euro fell to a four-month low against the dollar after the European Central Bank said it will temporarily stop lending to some Greek banks and as the nation’s leaders prepare for a second election.

The euro dropped for a fourth day versus the greenback as the ECB said it will push the responsibility for lending onto Greece’s central bank until the banks have sufficiently boosted their capital.

The pound fell the most in a month against the dollar as the Bank of England said U.K. growth will stay “subdued” in the near term.

The dollar pared gains against the yen after minutes from the last Federal Reserve meeting showed some policy makers said further easing may be needed if the economic recovery falters.

EUR/USD: yesterday the pair traded about May 15 low $1.2720.

GBP/USD: yesterday the pair fell below $1.5900.

USD/JPY: yesterday the pair rose, updated a week’s high.

Looking ahead, it is Ascension day Thursday, keeping the European calendar quiet. US data starts at 1230GMT, when initial jobless claims are expected to fall slightly 365,000 in the May 12 employment survey week. At 1400GMT by US leading indicators, the Philadelphia Fed survey and E-commerce totals data.