Forex: Wednesday’s review
The euro erased a decline versus the dollar as stocks rose amid speculation European policy makers are looking at measures to shield banks from the region’s sovereign- debt crisis, boosting stocks and damping demand for safety. But later the euro fell against most of its major counterparts as concern the region’s debt crisis may spread led investors to shun the currency before a European Central Bank meeting.
The 17-nation euro weakened to almost a decade low against the yen after a spokesman for European Union Economic and Monetary Commissioner Olli Rehn said there’s no concrete plan to recapitalize banks. Speculation about the effect of euro area bank holdings of Greek debt has helped weaken the euro 5.5 percent in the past month.
The pound declined against the dollar and euro after a report showed U.K. economic growth slowed during the second quarter.
EUR/USD: the pair is restored after falling, bur weakened later.
GBP/USD: the pair holds in range $1.5410-$1.5480
USD/JPY: yesterday the pair is grown
During Thursday at 1000GMT by German manufacturing orders, but this will also be overshadowed by the later ECB announcement at 1145GMT with it's policy announcement, followed as usual by the press conference, this time taking place in Berlin. This will be Jean-Claude Trichet's finale as ECB President with investors continuing to guess how the central bank will react to quickly deteriorating economic sentiment and ominous financial market tensions. At 1400GMT, the Insee, IFO, ISAE institutes deliver their 4Q Eurozone.
economic outlook. At 1230GMT, US data starts with initial jobless claims.