Forex: Tuesday's review

The dollar gained against the yen before the outcome of the Federal Reserve’s meeting to review its policy of debt purchases to bolster the U.S. economy.
The U.S. currency erased declines, including touching a three-week low against the euro, as Treasury yields increased after U.S. retail sales rose more than forecast during November, a sign consumers will play a bigger role in the economic recovery. The Swiss franc strengthened after the government raised its economic growth forecast for 2011. The Federal Open Market Committee will issue a policy statement at 2:15 p.m. New York time.
FOMC leaves all policies unch, affirms QE2 for $600b Tsys. FOMC says econ pace is slow, insufficient to bring down unemployment, recovery continuing but progress still 'disappointingly slow'.

EUR/USD: positions of pair on results of yesterday's session essentially haven't changed.

GBP/USD: the pair decreased below a mark $1,5800.

USD/JPY: the pair become stronger in around Y83,60.


UK data includes labour market data at 0930GMT where the median  forecast is for the claimant count measure to fall by 3,000 in November,  leaving the ILO unemployment rate at 7.7% (Oct). Average weekly earnings
ex-bonuses 3m y/y is seen coming in at 2.3%. UK data also includes the December CBI Distributive Trades Survey at 1100GMT.
EMU data includes Q3 unemployment data at 1000GMT.
US data continues at 1400GMT with the Treasury  International Capital Flows data, while at 1415GMT, US industrial  production is expected to rise 0.4% in November on strong utilities  production that should be offset by soft manufacturing production. Factory payrolls fell 13,000 in the month, while auto production jobs fell 2,000. The factory workweek was unchanged at 40.3 hours, while the ISM production index fell to 55.0. Capacity utilization is forecast to rise to 75.1%. The weekly Crude Oil Stocks data comes in at 1530GMT.
At 1330GMT, US consumer prices are expected to rise 0.2% in November, as energy prices are expected to move higher after rising sharply in the previous four months. Food prices are also expected to rise in the month. AAA reported another rise in gasoline prices in the middle of November from a month earlier. Core CPI is forecast to rise only 0.1%, as pricing power remains very weak. Also at 1330GMT, the Empire State manufacturing index is forecast to rise to a
reading of 5.0 in December after the surprise plunge in November.