Forex: Monday’s review

Yesterday the euro rose, offsetting previously incurred losses against the background of EU President Van Rompuy and EU Commissioner for Greece of possible progress in talks on Greek debt. EU President said that "the crisis is not yet complete, but the worst part is over," adding that "the problem of U.S. debt on average more serious than in the euro area and euro area deficit is not dramatic". Previously, the single currency fell against major currencies of the partner, after it became known that the Prime Minister of Greece Lucas Papademos appealed to the Ministry of Finance to prepare a report on options for action in case of default in the country. On Tuesday, leaders of political parties would meet again in an attempt to find a solution that will convince triple transfer the second tranche of aid for the troubled country. Earlier, Greece has the requirement to cut 15 thousand jobs in the public sector, it is necessary to improve performance.

The yen rose against most of its major peers even after Bank of Japan Governor Masaaki Shirakawa said the nation’s economic condition is “severe” because of deflation and the strong currency. The central bank is implementing monetary easing measures and will take appropriate steps as needed, he said in parliament in Tokyo yesterday.

EUR/USD: yesterday the pair fell, but could restore losses later.

GBP/USD: yesterday the pair fell, but could restore losses later.

USD/JPY: yesterday the pair gain, showed new week’s high.

A fairly quiet calendar Tuesday, although much focus will continue on the Greek debt/bailout talks, as PM Papademos again meets with the leaders of the political parties. Calendar events begin at 0700GMT, when SNB Acting Chairman Thomas Jordan is slated to give a speech in Geneva. At 1100GMT, Germany December industrial output data are released. US data kicks off at 1145GMT, when the US ICSC-Goldman weekly mall sales numbers are out. At 1330GMT, Canada December Building permits are out. The Johnson Redbook weekly chain store sales data are released at 1355GMT. The big event of the day is at 1500GMT, when Federal Reserve Chairman Ben Bernanke testifies on the economy to the Senate Budget Committee. Also at 1500GMT, US Job Openings ,Labor Turnover Survey numbers are released. At 1630GMT. The last data release of the day is at 2000GMT, when the Consumer Credit numbers are released.