Forex: Monday’s review

Yesterday the euro was under pressure as France prepared to sell bills after Standard & Poor’s stripped the nation of its top credit rating and cut eight other euro-region nations.

The euro dropped on Friday amid reports of imminent ratings cuts before S&P lowered the top grades of France and Austria one level to AA+, with “negative” outlooks. The company affirmed the ratings of countries including Germany, Belgium and the Netherlands and downgraded Italy, Portugal, Spain and Cyprus by two steps and Malta, Slovakia and Slovenia by one level.

France sells total EUR8.59b treasury bills, France receives total EUR17.036b bids for treasury bills. France 10-year OAT spread is 3bps tighter at +127bps.

U.S. financial markets are closed today in observance of Martin Luther King Day

EUR/USD: on results of the yesterday's tenders the pair has receded from month’s low.

GBP/USD: on results of the yesterday's tenders the pair has grown on a floor of a figure.

USD/JPY: on results of the yesterday's tenders the pair has decreased.

UK data sees CPI and RPI inflation data at 0930GMT. In the UK at 1000GMT, the Bank of England's King, Haldane, Cohrs and Jenkins are due to appear at a Treasury Select Committee Hearing on the Financial Stability Report where they can expect plenty of questions from lawmakers about the risks posed by the Eurozone and problems of bank funding. At 1830GMT in the UK, UK Bank of England MPC member Adam Posen delivers a speech at Chatham House. European events for Tuesday start at 0730GMT when ECB Governing Council member Ewald Nowotny is due to speak at The Central & Eastern European Forum, Vienna. The German ZEW survey is due at 1000GMT where

the main economic sentiment index is expected to come in at -50.5. EMU final HICP, also at 1000GMT is expected to come in at 0.4% m/m, 2.8% y/y. At 1040GMT, German Economics Minister Philipp Roesler delivers a speech at a conference organized by the German Chamber of Industry and Commerce (DIHK), in Berlin.US data starts at 1330GMT when the NY Fed Empire State Manufacturing Index is expected to rise to a reading of 11.0 in January after improving sharply in December. At 1400GMT, the Bank of Canada Rate announcement is due, where the central bank is expected to leave interest rates unchanged. US data continues with the weekly Capital Goods Index at 1430GMT and the weekly Retail Trade Index at 1530GMT.