Forex: Monday’s review

Yesterday the dollar gained against most of its major counterparts as stronger U.S. economic data reduced bets the Federal Reserve would add to monetary stimulus, bolstering demand for the currency. Retail sales in the U.S. increased 1.1 percent in February, the most in five months, according to the median estimate of 80 economists in a survey before Commerce Department figures due tomorrow. That would follow data on March 9 that showed nonfarm payrolls increased by 227,000 in February after rising by a revised 284,000 the prior month. The unemployment rate held at a three-year low of 8.3 percent.

The 17-nation euro pared losses against the yen before European finance ministers meet in Brussels to review a second aid package for Greece. The euro held a two-week decline against the dollar before ministers from the region’s 17 nations gather in Brussels to sign off on a 130 billion-euro ($171 billion) second package for Greece after bondholders agreed last week to take a loss on the country’s debt.The world’s biggest banks are less pessimistic about the euro as the European Central Bank provides unlimited cash to the region’s financial system, Germany may avoid recession and Greece looks to complete the biggest sovereign-debt restructuring in history.

EUR/USD: yesterday the pair gain, being in downtrend.

GBP/USD: yesterday the pair fell, touched a level $1.5600.

USD/JPY: yesterday the pair was in range Y82.00-Y82.50.

European data for Tuesday also starts at 0630GMT with France HICP data, while France current account data is due at 0745GMT. While the main Germany data release is the ZEW data at 1000GMT. UK data at 0930GMT includes the Trade Balance Report, CML Mortgage Approvals and also Weekly Fuel Price data. Also today, the DCLG House Price Index is due, while at 1000GMT, the UK Conference Board Leading Indicator is due.