Data Supports EUR, GBP

The greenback was mixed in Tuesday trading, falling against the euro and sterling while rallying versus the yen. Economic data from the Eurozone and UK helped support their respective currencies while the US had a dearth of reports in the session. Separately, US equity bourses benefited from Warren Buffett’s announcement to offer support for bond insurers, providing up to $800 billion in municipal bonds. The yen slumped across the board, falling to 107.52 against the dollar and 157 versus the euro as the Dow Jones rallied by over 1.3%.On Wednesday, the US economic calendar picks up with the release of retail sales and Fed Chairman Bernanke’s Congressional testimony. Retail sales are estimated to fall by 0.2% in January extending December’s 0.4% decline. The excluding-autos retail sales are seen edging up by 0.2% from a 0.4% drop a month earlier. Fed Chairman Bernanke will testify before Congress and is expected to reiterate the FOMC’s readiness to support the economy and ease rates further in the face of additional weak US economic data.