Asian session: The dollar gained versus all its major counterparts

00:01 United Kingdom RICS House Price Balance January -16% -14% -16%

00:30 Australia National Australia Bank's Business Confidence January 3 4

02:45 U.S. FOMC Member Williams Speaks

03:00 Japan BoJ Interest Rate Decision 0.10% 0.10% 0.10%

04:30 Japan Industrial Production (MoM) (finally) December -2.6% +4.0% +3.8%

04:30 Japan Industrial Production (YoY) (finally) December -4.2% -4.1% -4.3%

07:00 Japan BOJ Press Conference

The dollar gained versus all its major counterparts after Moody’s Investors Service cut ratings on European nations including Italy, Spain and Portugal, boosting demand for safer assets. Spain was downgraded to A3 from A1, Italy was cut to A3 from A2 and Portugal was lowered to Ba3 from Ba2, Moody’s said, giving all three nations a negative outlook. The ratings firm also reduced credit levels for Slovakia, Slovenia and Malta. The U.S. currency advanced to its highest level in almost three weeks versus the yen after the Bank of Japan added to monetary easing to sustain the Asian nation’s economy.

The yen dropped against 12 of 16 major peers after the Bank of Japan said today it would increase its purchases of Japanese government bonds by 10 trillion yen ($128 billion). The central bank maintained the overnight lending rate at between zero and 0.1 percent.

The euro declined for a third day against the greenback before European finance ministers meet tomorrow to discuss a second aid package for Greece, following the country’s approval of austerity measures. The euro weakened against the dollar before Italy is scheduled to sell bonds today due in 2014, 2015 and 2017. Spain, Belgium and Greece will auction bills and the Netherlands will offer debt maturing in 2017.

The Australian and New Zealand dollars dropped as Asian stocks declined, curbing risk appetite.

EUR/USD: during the Asian session the pair continued yesterday's decrease.

GBP/USD: during the Asian session the pair fell to $1.5700.

USD/JPY: during the Asian session the pair gain to Y78.00.

A heavy calendar kicks off Tuesday at 0630GMT, when BOJ Governor addresses the press and outlines the decision to extend the central bank's asset purchase program. UK data is released at 0930GMT, with the release of the UK consumer price data. US calendar, kicking off at 1245GMT with the ICSC-Goldman Weekly Mall Sales numbers. At 1330GMT, the monthly retail sales report, Producer Price Index annual revisions and the Import Price Index data all hit traders screens. Also at 1330GMT, Canadian New motor vehicle sales data for December is released. Philadelphia Federal Reserve Bank President Charles Plosser speaks to the University of Delaware Center for Economic Education and Entrepreneuship on the economic outlook, in Newark, Delaware at 1345GMT.