The yen fell
to the lowest since January against the dollar after Japan's government said the economy
is ``deteriorating,'' acknowledging for the first time that the country's
longest postwar expansion has probably ended.
Euro was under pressure as investors
speculate ECB will keep its key interest rate at a seven-year high of 4.25% today,
according to the forecasts of economists. ECB President Jean- Claude Trichet
will hold a press conference after the rate decision.
Factory orders in Germany,
adjusted for seasonal swings and inflation, declined 2.9% from May, the Economy
Ministry said Wednesday. That's the biggest drop since July 2007.
EUR/USD printed session highs around
$1.5515, but weak German economic data dragged the rate down below $1.5400, triggering
stops and bids.
GBP/USD tested 6-dais channel resistance
line on $1.9590 and retreated to $1.9455.
USD/JPY rose to 5-months high on
Y109.70, triggering offers around Y108.80/90 and stops on Y109.05/10.
Today’s focus is on rate decisions from BoE and ECB with banks are expected to leave rates unchanged at 5.00% and 4.25% respectively. But main attention will be on ECB’s head Trichet press-conference.
BoE rate decision is due to come at 11:00 GMT, while ECB’s decision is schedule to come at 11:45 GMT. At 10:00 GMT Germany industrial production figures will be released.