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

Main headlines:

Draghi Lured by EU Leaders to Build Bridge to Euro 2.0 - Bloomberg

OMT Adds to ECB's Arsenal of Acronyms - WSJ

Is the ECB's Bond Plan a Game-Changer for the Euro? - CNBC

China to Build New Roads, Subways to Boost Economy - Bloomberg

Payroll growth seen tepid, may force Fed's hand - Reuters

Nouriel Roubini: QE3 Is Coming soon - CNBC

Americas wrap-up:

Service sector growth rises in August: ISM - Reuters

Obama merges hope with realism in re-election pitch - Reuters

Senate committee launches probe of JPM's "Whale" losses - Reuters

Amazon Challenges Apple With Updated Line of Kindles - Bloomberg

Harper Seeks More Gains From China in Exchange for Canada Energy Resources - Bloomberg

Peru Keeps Rate Unchanged at 4.25% After Damping Credit Growth - Bloomberg

Asia-Pacific summary:

Asian Currencies Set for Third Weekly Advance on ECB Bond Plan - Bloomberg

Asian Stocks Head for Biggest Gain Since June on ECB Plan - Bloomberg

Chinese Party Elders Step Back In - WSJ

China Gets Worst Ranking in Global Investor Poll Since 2010 - Bloomberg

China Trade Goal in Doubt as Europe Weighs on Christmas Orders - Bloomberg

European news:

Euro hovers near 2-mth peak, cheered by ECB bond plan - Reuters

Weidmann isolated as ECB plan approved - FT

Stage set for euro rescue but will Spain jump? - Reuters

Rajoy, Merkel: No Talk of Aid Conditions at Meeting - CNBC

OECD slashes short-term Eurozone forecasts - FT

Economist Sinn Rattles Merkel Laboring to Save Euro - Bloomberg

China Price War Draining Jobs in Germany's Solar Valley - Bloomberg

Investment banks eye Europe job cuts - FT

Sweden surprises with interest rate cut - FT

Putin Looks East for Growth as Indebted Europe Loses Sheen - Bloomberg

FOREX action

EUR: The euro continues to rally across the board after yesterday's historic day. In its monthly meeting, the ECB announced an ambitious plan to buy unlimited sovereign debt assets of troubled Eurozone members. The measure hass been dubbed a game changer. Mario Draghi, the ECB's guv'nor, underlined that the OMT plan comes with hard strings attached. EUR-USD hovers near a 2-month high close to 1.2650 and EUR-JPY is approaching the psychological 100 threshold.

GBP: The sterling crosses show a strong footing as well as the euro trades. As expected, yesterday's BOE meeting was a "non-event" with no changes in rates and the SMP. Cable has breached the 1.5950 level while GBP-JPY has done the same with the 125.00 resistance and is heading towards 126.00. EUR-GBP is still almost flat pivoting in the 0.7930 area.

CHF: To the delight of Swiss authorities the franc dips versus the euro. EUR-CHF has broken the 1.2100 resistance level and rumours point to the likelihood of the SNB hiking the 1.2000 floor introduced one year ago to 1.2200. The ECB meeting outcome reduces heavily the so-called 'convertibility risk'. Meanwhile, we see the USD-CHF trading close to 0.9560.

Nordics: Yesterday the Riksbank rowed against the tide slashing its official interest-rate by 25 basic points to 1.25%. The krona suffered a volatility spike. The ECB bond purchase scheme reduces both the NOK and the SEK allure as haven assets. Today, they are in red versus the almighty euro and advance against the greenback.

USD & JPY: Under a risk prone scenario the US dollar and the Japanese yen are not in favour of high beta seekers. Today the attention swerves to the monthly employment data in the US. Estimates point to unemployment rate stuck at 8.3% and non-farm payrolls around 125k. USD-JPY trades a tad below 79.00.

CAD, AUD & NZD: The three dollars keep their upward momentum in a risk prone context. Despite weak economic data in Australia the aussie dollar steadies as it does the kiwi and the loonie. After doing the pull-back to the 1.0200 support area the AUD-USD is back and running towards 1.0350.

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