00:30 Australia New Motor Vehicle Sales (MoM) December 0.0% +2.2%

00:30 Australia New Motor Vehicle Sales (YoY) December +9.7% +17.5%

05:00 Japan Consumer Confidence December 39.4 40.7 39.2

The yen headed for its biggest two- day gain in eight months amid speculation the Bank of Japan  will fail to impress investors with extra policy measures at its Jan. 21-22 meeting. The yen halted losses yesterday after Japanese Economy Minister Akira Amari said an excessively weak currency may drive up import costs and hurt households. The Nikkei newspaper today reported that Shigeru Ishiba, secretary general of Japan’s ruling Liberal Democratic Party, said a weaker yen may trouble some industries.

Japan’s machinery orders, an indicator of capital spending, climbed 3.9 percent in November from the previous month, Cabinet Office data showed today, marking the biggest increase since July.

The European Union’s statistics office will today release updated figures on the region’s consumer prices in December. The inflation rate probably rose 2.2 percent from a year earlier, unchanged from the previous reading, according to the median estimate of economists.

ECB Governing Council member Ewald Nowotny is due to speak on monetary policy today after Luxembourg’s Juncker said “the euro foreign-exchange rate is dangerously high.

EUR/USD: during the Asian session, the pair declined, approaching the previous day's low.

GBP/USD: during the Asian session the pair fell below $ 1.6050.

USD/JPY: during the Asian session the pair fell below Y88.00.

Wednesday's European calendar kicks off earluy, with the release of the  ACEA December new car registrations data at 0700GMT. Also at 0700GMT, German third quarter punlic debt numbers are due. At 0730GMT, the Bank of France December retail survey will be released. There is a string of global central bank appearances scheduled, starting with ECB Governing Council member Ewald Nowotny's keynote speech on monetary policy, in Vienna, starting at 0820GMT. Further eurozone data is expected from 1000GMT, when EMU December final  HICP numbers are due for release. At 1130GMT, Norges Bank Governor Oeystein Olsen is set to address EU ambassadors, in Oslo. Back in Europe, at 1430GMT, ECB Governing Council member Patrick Honohan is to appear before an Irish parliamentary committee, in Dublin.