The buck gained ground against the majors in London trading as a downgrade to Russia's long-term currency ratings led to speculation that the country will be required to sell euros in order to rebalance its currency basket. Poor economic data across the pond did not help matters. The eurozone composite PMI final read for January was revised down to 38.3 from 38.5 previously. Meanwhile, retail sales for the region were flat in December and the annual rate was a worse than anticipated -1.6% from -2.6% the prior month.

EUR/USD shed more than -150 pips and was sitting near 1.2840 ahead of the NY session. We would reckon that a break below 1.28 support should see another leg-down in the pair here. Resistance lurks into 1.29 as well. EUR/JPY collapsed more than -110 points to 114.40 while USD/JPY was just a touch higher near the 89.00/10 zone. USD/CHF caught a bid on the back of the news as well and was about 150 pips higher near the 1.1610/20 area.

Upcoming Economic Data Releases (NY Session) prev est

* 2/4 13:15 GMT US ADP Employment Change JAN -693K -525K

* 2/4 15:00 GMT US ISM Non-Manf. Composite JAN 40.6 39.1

* 2/4 21:45 GMT NZ Unemployment Rate 4Q 4.20% 4.60%

* 2/4 21:45 GMT NZ Participation Rate (QoQ) 4Q 68.70% 68.40%

* 2/4 21:45 GMT NZ Employment Change (QoQ) 4Q 0.10% -0.70%

* 2/4 21:45 GMT NZ Employment Change (YoY) 4Q 1.00% -0.70%