Forex: Wednesday’s review

The euro’s 14-day relative strength index versus the dollar weakened to 28.8 today, the lowest level since Oct. 3. A reading below 30 signals that an asset may be oversold and due to reverse direction.

The pound was the biggest gainer against the euro among the major currencies as investors sought protection from the crisis.

The pound rose for a third day against the euro as stock declines spurred demand for the perceived safety of the British currency.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the U.S. currency against those of six trading partners, rose to highest since January.

EUR/USD: yesterday the pair fell on half figure.

GBP/USD: yesterday the pair decreased.

USD/JPY: yesterday the pair rose.

On Thursday sees the flash PMI releases from the main European states, which are expected to decline in both France at 0758GMT and

Germany at 0828GMT. The Swiss National Bank reveals it's policy decision at 0830GMT. There has been widespread speculation that the SNB they may hike the Swiss franc trading floor to E1.25 in euro-Swiss. Recent data have pointed up the continuing deflation danger in that country as a result of its still overly mighty currency. The EMU flash PMIs are due at 0858GMT and are expected to edge lower to readings of 46.0 for manufacturing and 47.0 for the services measure. The ECB then publishes the December monthly bulletin at 0900GMT. UK data at 0930GMT includes Retail Sales, the BOE GfK/NOP Inflation Attitudes survey and also SMMT Car Production. EMU Q3 GDP and employment data are due at 1000GMT along with final HICP for November, which is expected to confirm the preliminary reading of 3%. Then, at 1025GMT, ECB President Mario Draghi gives a lecture on "Last Resort ECB? Monetary Policy Leeway In The Social Market Economy," in Berlin. US data at 1330GMT includes the weekly Jobless Claims, Q3 Current Account data, the November PPI and also the latest NY Fed Empire State Survey.US data at 1330GMT includes the weekly Jobless Claims, Q3 Current Account data, the November PPI and also the latest NY Fed Empire State Survey. The weekly Bloomberg Comfort Index follows at 1445GMT, while at 1500GMT, the Philadelphia Fed index is expected to rise to a reading of 5.0 in December after falling to 3.6 in November. Weekly EIA Natural Gas Stocks data is due at 1530GMT. Later data includes the 2000GMT France Insee economic outlook. Later on, at 2130GMT, US M2 Money Supply data is due.