Forex: Wednesday’s review

Yesterday the euro fluctuated against the dollar amid speculation Greek Prime Minister Lucas Papademos and coalition party leaders will fail to agree on terms required for a bailout. Greece’s Papademos negotiated with political leaders in Athens after delaying the gathering for a second time in as many days. He met officials from the European Commission, the European Central Bank and the International Monetary Fund to put the final touches on terms required for a 130 billion-euro ($172 billion) bailout. Euro-area finance ministers are due to gather in an emergency meeting in Brussels as the Greek government pushes to complete talks.

The Dollar Index rose from its weakest level in two months on demand for a refuge as Greek political leaders were locked in discussions with Papademos.

The yen fell against the majority of its major peers as Japan’s current-account surplus slid to a 15- year low in 2011. The yen dropped after the Finance Ministry in Tokyo said Japan’s current-account surplus shrank 44 percent in 2011 from the previous year to 9.63 trillion yen ($125 billion), the lowest since 1996. Japan’s trade surplus makes the currency attractive as a haven because it means the nation doesn’t have to rely on overseas lenders.

EUR/USD: yesterday the pair traded in a range $1.3220-$1.3290.

GBP/USD: yesterday the pair has fallen to a figure.

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

A string of UK data is scheduled for release at 0930GMT, with the release of January BOE Quoted Rates, December Trade data and December manufacturing and industrial output numbers. Also at 0930GMT, the CML mortgage repossession data is set for release. The US calendar kicks off at 1330GMT, with the release of the weekly jobless claims data. At 1500GMT, Wholesale Inventories numbers are released, the same time the UK policy forum the NIESR release their updated growth forecasts. At 1530GMT, the Regular IMF news briefing is being held. The last scheduled event for the day is the US money supply data, due for release at 2100GMT.