Forex: Monday’s review

Yesterday the euro weakened after German Chancellor Angela Merkel’s spokesman said Europe’s leaders won’t provide the quick resolution to the region’s debt crisis that global policy makers are pushing for at a summit this weekend.

The 17-nation currency retreated from a one-month high against the dollar, following last week’s biggest advance in more than two years.

The pound declined versus the dollar and the yen on concern the Bank of England’s additional stimulus measures won’t be enough to revive growth.

Group of 20 finance ministers and central bankers concluded weekend talks in Paris endorsing parts of the emerging plan to avoid a Greek default, bolster banks and curb contagion. They set the Oct. 23 summit of European leaders in Brussels as the deadline for it to be delivered.

The yen and the dollar strengthened against major currencies as European stocks erased gains.

EUR/USD: yesterday the pair fell.

GBP/USD: yesterday the pair decreased.

USD/JPY: yesterday the pair was under pressure and closed day below Y77.00.

On Tuesday UK data sees the Consumer Price Index for September at 0830GMT. Core-European data leads with the 0900GMT release of the latest ZEW survey. US data  at 1230GMT, producer prices are expected to rise 0.3% in September. A late but lead focus also comes at 1715GMT, when Fed Chairman Ben Bernanke delivers a speech to the Boston Fed Bank conference.