Forex: Thursday’s review

Yesterday the euro reached a two-month high against the dollar and the yen after Greek political leaders said they had reached an agreement on austerity measures needed to obtain a bailout. The 17-nation currency strengthened against all but one of its most-traded counterparts after European Central Bank President Mario Draghi said it would lower the collateral requirements to access the next three-year loan auction later this month. The accord came as euro-region finance ministers held an emergency meeting in Brussels to discuss the 130 billion-euro ($173 billion) aid package. Luxembourg’s Jean-Claude Juncker, who leads the group, said there will be no final decision on Greece’s bailout package at the meeting. The ECB maintained its main refinancing rate at 1 percent.

The Dollar Index, which Intercontinental Exchange Inc. uses to track the greenback against the currencies of six U.S. trading partners, dropped 0.4 percent to 78.413 after falling to 78.364, the lowest since Dec. 8. The gauge is weighted 57.6 percent to movements in the euro.

The pound rose against the dollar after the Bank of England said it would increase its bond-buying program by less than some economists forecast. The Monetary Policy Committee raised the target for bond purchases by 50 billion pounds ($79.3 billion) to 325 billion pounds, more than a quarter of current outstanding gilts.

EUR/USD: yesterday the pair has grown, but could not be fixed above $1.3300.

GBP/USD: yesterday the pair has grown, but lost positions later.

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

The European calendar gets underway at 0700GMT, when Germany releases January final HICP data.  At 0745GMT, French industrial

output and December current account data is released. At 1030GMT, the German government official spokesperson gives a regular press conference, in Berlin. There is a string of UK data at 0930GMT. Fourth quarter construction data is released, along with the January Producer Price Index (PPI) and the Jan Input/Output.