Forex: Monday’s review

Yesterday the euro strengthened to an almost three-week high against the dollar as French Finance Minister Francois Baroin said negotiations between Greece and its private creditors are making “tangible progress.”

The 17-nation currency gained versus 13 of its 16 major counterparts tracked by Bloomberg as European Union finance ministers gather in Brussels to discuss a Greek debt swap, budget rules and a financial firewall to protect indebted nations.

Bondholders negotiating a debt swap with Greece have made their “maximum” offer, leaving it to the EU and International Monetary Fund to decide whether to accept the deal, said Charles Dallara, managing director of the Washington-based Institute of International Finance, who’s representing private creditors in the talks.

The pound fell 0.7 percent to 83.61 pence per euro after profit alerts increased by more than 70 percent in the final quarter of 2011 at U.K.-listed companies, the biggest jump since the first three months of 2001, according to Ernst & Young LLP.

EUR/USD: yesterday the pair has grown on one and a half figure, having fixed the positions above $1.3000.

GBP/USD: yesterday the pair has grown to $1.5600, but has receded from this high later.

USD/JPY: yesterday the pair was in range Y76.85-Y77.05.

In Europe, this morning, the flash manufacturing/services PMIs are due, including France at 0658GMT, Germany at 0728GMT and the main

EMU data at 0758GMT. UK data sees the 0930GMT release of Public Sector Finances data. EMU Industrial Orders data is also due at 1000GMT. US data starts at 1245GMT with the weekly ICSC shopping mall sales data, followed by the weekly Redbook at 1355GMT. US data then continues with the Richmond Fed Manufacturing Index and also BLS State Unemployment data at 1500GMT. Also at 1500GMT, the IMF presents updates to the World Economic Outlook, Global Financial Stability Report. Overnight, from 0200GMT on Wednesday, President Obama delivers the annual State of the Union Address to a joint session of Congress, followed by a Republican rebuttal delivered by Indiana Governor Mitch Daniels.