EU session review: Yen, Swiss Franc decline as stocks advance, concern over oil price eases

Data released
09:00     EU(17)     M3 money supply (January) adjusted Y/Y    1.5%    1.9%    1.7%
09:00     EU(17)     M3 money supply (3 months to January) adjusted Y/Y    1.7%    -    1.6%
09:30     UK     GDP (Q4) revised Y/Y    -0.6%    -0.4%    -0.5%
09:30     UK     GDP (Q4) revised Y/Y     1.5%    1.8%    1.7%

The yen and franc declined before a report that is forecast to show U.S. economic growth quickened and as stocks rose, denting demand for the perceived safety of the Japanese and Swiss currencies.
“The yen is overbought, and there’s potential for further losses once the crisis is resolved,” said Jane Foley, a senior currency strategist at Rabobank. Losses by the yen may be limited as the Libyan crisis “is clearly not resolved yet and the market won’t want to leave a lot of risk open over the weekend,” Foley said.
The franc retreated from a record high against the dollar on speculation the Libyan rebellion won’t trigger an oil-price rally sufficient to dent the global economic recovery.
Libyan leader Muammar Qaddafi, who has lost control of much of his country’s oil-rich east, appealed on state television to citizens to end violence as his forces stepped up a crackdown on opponents. The nation holds Africa’s largest crude oil reserves.
The pound slumped to its weakest level this month against the euro after a report showed Britain’s economy shrank more than initially estimated in the fourth quarter.
U.K. gross domestic product contracted 0.6% in the fourth quarter, the Office for National Statistics said today, more than the Jan. 25 estimate of a 0.5% drop.

EUR/USD consolidated within the $1.3815/40 for the most hours in EU before weakened to current $1.3775/80. Bids at $1.3770/75 give some support to euro.

GBP/USD fell to the lows around $1.6070 before trying to recover to $1.6100. In general rate remains under pressure.

USD/JPY holds between Y81.80/Y82.05.

U.S. gross domestic product probably grew at a 3.3% annual rate in the fourth quarter, Commerce Department figures will show today, according to the median prediction. That’s higher than an initial estimate of 3.2% reported on Jan. 28.