Forex: Monday’s review

The euro fell to the lowest level in two months versus the dollar as Moody’s Investors Service said it will review the ratings of European Union nations after last week’s summit failed to produce decisive steps to end the debt crisis. Italian bonds slid as the nation sold 7 billion euros ($9.3 billion) of one-year bills to yield 5.95 percent, compared with an average 2.70 percent in the past five years. The securities fell even after the European Central Bank was said to have bought the nation’s debt. Italy has to repay about 53 billion euros in the first quarter, about a third of the region’s maturing bonds. The euro fell 1.5 percent to $1.3235 at 11:55 a.m. in New York, the lowest level since Oct. 4.

The dollar and yen strengthened against a majority of their most-traded counterparts as investors sought safer assets on concern crisis-fighting efforts are failing to stop European borrowing costs from rising.

EUR/USD: yesterday the pair fallen on two figures.

GBP/USD: yesterday the pair decreased.

USD/JPY: yesterday the pair grown.

European data for Tuesday starts at 0630GMT with France HICP data. The IEA monthly oil market report is due at 0900GMT, while at the

same time, the Bank of England's Spencer Dale speaks at an event at Bloomberg. The main core-European release for Tuesday is the german ZEW data at 1000GMT. UK inflation data at 0930GMT is expected to see CPI come in at 0.2% m/m, 4.8% y/y with core-CPI at 3.3% y/y.US data starts at 1245GMT with the weekly ICSC-Goldman Store Sales data, while at 1330GMT, US retail sales are expected to rise 0.5% in November after rising sharply in September and October. At 1730GMT, the FOMC monetary policy announcement is due. The

FOMC's final meeting of 2011 comes amid great uncertainty about the European debt crisis, America's own fiscal mess and the Chinese economy, among other things.