This is a review of the elements likely to affect foreign exchange
(Forex) trading in Europe:
ECB holds back from bond yield cap - FT
Draghi to deliver bond plan at crunch ECB meeting - Reuters
Rise Before ECB Meeting; Asia Shares Pare Gains - Bloomberg
Draghi Credibility at Stake as ECB Tries to Save The Euro - Bloomberg
Second quarter productivity raised, wage inflation muted - Reuters
Growth in US Services Industry Probably Eased in Sign of Little Traction - Bloomberg
Manufacturing another headache for US economy - Reuters
Pimco's Gross: Fed Is Harming, Not Helping Economy - CNBC
US Will Go Over the 'Fiscal Cliff': Peter Orszag - CNBC
Bill Clinton Asserts Democrats Create More Jobs - Bloomberg
Americans Say Better Off Since Obama Even as Slump Lasts - Bloomberg
US arms buyer foresees more programme terminations - Reuters
Goldman Sachs Boosts Private Loans to the Wealthy - CNBC
Amazon Is About to Reveal Its New Weapon in Tablet War - CNBC
Canadian Dollar Depreciates as Bank of Canada Maintains Rate and Language - Bloomberg
Powerful Quake Hits Costa Rica - WSJ
BOJ Shirakawa warns of yen rise pain, China slowdown - Reuters
Australia Jobless Rate Unexpectedly Falls, Lifting Local Dollar - Bloomberg
India Plans to End Coal Miner's Monopoly - WSJ
World Bank Appoints former Indian senior official Chief Economist - WSJ
South Korea Reduces Estimate of Second-Quarter Expansion - Bloomberg
Hong Kong Chief Battles Chinese Invaders Over Cheaper Housing: Mortgages - Bloomberg
Singapore Bets on Casino Revenues - WSJ
Malaysia gives green light to rare earth plant - FT
Vietnam Risks Biggest East Asia IMF Rescue Since 1990s - Bloomberg
Singapore Airlines' Last A380 Ends Jumbo-Jet Orders - Bloomberg
Greek exit fears strengthen Draghi's hand - FT
Chinese Solar-Panel Exporters Face Threat of EU Tariffs - Bloomberg
Poland Holds Rate at Three-Year High Even as Growth Slows - Bloomberg
Cameron Seeks Heathrow Consensus - WSJ
BOE Struck by Lure of Banks as UK Economist Quits - Bloomberg
Swiss Franc Weakens Versus Euro on Speculation SNB May Shift Cap - Bloomberg
EUR: The euro continues to hedge higher. All eyes are turning to today's ECB monthly meeting where Mario Draghi could lay the ground for unlimited sovereign debt purchases. EUR-USD holds it position near the recent 1.26378 high and EUR-JPY is testing again the 99.00 threshold.
GBP: The sterling crosses move in synch with the euro trades. Today's BOE meeting is expected to be a "non-event" with no changes in rates and the SMP. Cable has breached 1.5900 while GBP-JPY is in the vicinity of 124.80. EUR-GBP steadies towards 0.7930 even though it fell through the 0.7900 support yesterday.
CHF: The Swiss franc takes a hit versus the euro. EUR-CHF abandons its familiar trading range close to 1.2010 amid rumours that the SNB could increase the 1.2000 floor introduced one year ago. Meanwhile, we see some book squaring in the USD-CHF as it trades close to 0.9560.
Nordics: The kroner and the krona pause a bit while waiting for the ECB outcome. Both the NOK and the SEK are almost flat against the euro and the green-back. Today the Riksbank is expected to leave its official rate unchanged at 1.50%.
USD & JPY: The US dollar
and the Japanese yen pare some of their recent gains. Today we will also pay close attention to employment data in the US. USD-JPY trades close to 78.42.
CAD, AUD & NZD: The three dollars rise across the board in a risk prone scenario. Strong employment numbers in Australia help the aussie dollar to claw back. AUD-USD is doing the pull-back to the 1.0200 support area that was breached yesterday.