This is a review of the elements likely to affect foreign exchange (Forex) trading in Europe:

Main headlines:

ECB holds back from bond yield cap - FT

Draghi to deliver bond plan at crunch ECB meeting - Reuters

Oil, Euro Rise Before ECB Meeting; Asia Shares Pare Gains - Bloomberg

Draghi Credibility at Stake as ECB Tries to Save The Euro - Bloomberg

Americas wrap-up:

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

Asia-Pacific summary:

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

European news:

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

FOREX action

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.

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