The euro fell against the dollar despite a report that show investor confidence in Germany biounced from record low this month. November ZEW Expectations index posted -53.5 Vs -63.0 In Oct. The gauge reached an all-time low of - 63.9 in July.
The yen rose against the euro and the dollar as declines in stocks damped demand for purchases of higher-yielding currencies funded by loans in Japan.
Japan's currency gained most versus the South African rand as commodities fell after China reported the slowest growth in imports since June 2007.
``Sentiment is in favor of further yen gains,'' said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd., Japan's largest currency broker. ``A weak stock market causes a reversal in risk trades, which is supportive of the yen. The euro is vulnerable because the economic outlook points to lower interest rates in the future.''
Trading volumes may be lower than normal because U.S. financial markets are closed today for a public holiday, Ishikawa said.
EUR/USD gained after stronger than expected ZEW, but shortly fell under pressure and fell back to bids zone around $1.2700. Stronger demand spotted at the lower bound of the triangle pattern near $1.2670/55. Stops located under $1.2650. Offers remain at $1.2800 and at $1.2900/25.
GBP/USD posted session high at $1.5700, before fell to $1.5500/ Ahead of US openinf cable Managed a rebound to $1.5600.
USD/JPY having tested Y98.30 traded within Y97.55- Y98.00 bounds.
Trading volumes may be lower than normal because U.S. financial markets are closed today for a public holiday.
Australian Westpac consumer confidence index is due at 23:30 GMT.