Data:
00:30 AUS RBA Monetary Policy Statement
09:30 UK PPI (Input) (October) adjusted -5.6% -2.6% -1.2%
09:30 UK PPI (Input) (October) unadjusted Y/Y 13.8% 18.0% 24.5%
09:30 UK PPI (Output) (October) unadjusted -1.0% -0.4% -0.3%
09:30 UK PPI (Output) (October) unadjusted Y/Y 6.8% 7.4% 8.5%
09:30 UK PPI Output ex FDT (October) adjusted -0.5% -0.1%
09:30 UK PPI Output ex FDT (October) unadjusted Y/Y 4.9% 5.1% 5.4%
The yen declined for a second day against the euro on speculation a $586 billion stimulus package unveiled by China will give investors more confidence to buy higher-yielding assets using money borrowed in Japan.
The yen fell the most versus the South African rand and Australian dollar as stocks and commodities rose following China's announcement. The dollar weakened against the euro, British pound and Indian rupee after the Group of 20 nations said it's ready to act ``urgently'' to prop up global growth.
``China and the tone of the G-20 meeting are clearly going to provide some support to the economic outlook,'' said Tony Morriss, a currency strategist at Australia & New Zealand Banking Group Ltd. in Sydney. ``This would reduce risk aversion. The yen looks weak overall.''
China's stimulus plan, equivalent to almost a fifth of last year's gross domestic product, is a response to a slump in its major export markets. Japan will contract 0.2 percent next year, the U.S. by 0.7 percent and the euro area 0.5 percent, while China will expand 8.5 percent, the International Monetary Fund said last week, predicting the first simultaneous recession in the U.S., Japan and euro region in the post-World War II era.
Stocks rose in Europe and Asia today and U.S. index futures climbed as appetite for higher-yielding assets improved. The MSCI World Index added 1.5 percent. Europe's Dow Jones Stoxx 600 Index advanced 2.7 percent and futures on the Standard & Poor's 500 Index climbed 2.1 percent. The MSCI Asia Pacific Index added 3.1 percent.
``Optimism over China's stimulus plan is contributing to stock market gains,'' said Takeshi Tokita, vice president of foreign-exchange sales in Tokyo at Mizuho Corporate Bank, a unit of Japan's second-largest publicly traded lender. ``This is helping to calm investor sentiment and causing the yen to weaken.''
EUR/USD found the base at $1.2790 before posted session high at $1.2920. Bids located at $1.2730/40, offers on approach to $1.2950.
GBP/USD GBP/USD posted session high at $1.5885, before fall sharply down to $1.5675. Later the cable traded around $1.5800. Offers noted at $1.5880/1.5900 and $1.6000/25. Bids come in at $1.5670 and $1.5640 with stops below the latter level.
USD/JPY traded within Y98.70- Y99.40 range. Small offers Y99.40/50. more on approach to Y100.00. Bids at Y98.70 and и Y98.25/20. stops lower.