The following data were published:
04:30 Japan Industrial output (September) final 1.1%
04:30 Japan Industrial output (September) final Y/Y 0.2%
07:00 Germany GDP (Q3) flash -0.5%
07:00 Germany GDP (Q3) flash Y/Y adjusted 0.8%
07:00 Germany GDP (Q3) flash Y/Y unadjusted 1.3%
The euro fell to a two-week low against the dollar after
Germany's economy entered its worst recession in at least 12 years,
spurring speculation the European Central Bank will cut interest rates.
The 15-nation currency also pared gains against the yen after a
German government report showed the biggest contraction over two
consecutive quarters since 1996. The yen declined versus the Australian
dollar, after yesterday surging the most in three weeks, as currency
intervention by the Reserve Bank of Australia fueled speculation other
central banks may follow suit.
Germany's gross domestic product
contracted 0.5 percent in the third quarter after shrinking 0.4 percent
in the previous three-month period, the Federal Statistics Office in
Wiesbaden said today. A common definition of a recession is two
consecutive quarters of a contraction in GDP.
The Australian dollar climbed after an RBA spokesman confirmed the central bank bought its own currency today.
The yen fell from a two-week high against the dollar on speculation other central banks will intervene in currency markets.
Abrupt
currency moves are undesirable and a stronger yen hurts domestic stock
investors, Japan's Finance Minister Shoichi Nakagawa told lawmakers
today in Tokyo. He said last month Japan was prepared to intervene for
the first time in four years.
The yen earlier rose to a
two-week high against the euro after U.S. Treasury Secretary Henry
Paulson's plan to divert bailout money from banks sparked a reduction
in purchases of higher-yielding assets.
The British pound slumped
after Bank of England Governor Mervyn King said the U.K. economy will
shrink through most of next year and policy makers will cut interest
rates further.
EUR/USD having begun the session of
Thursday in the field of $1,2495, the pair has established 2 years low
at a level $1,2384. Later the rate could block today's losses, having
raised in area $1,2500.
GBP/USD having updated 2 years low ($1,4808), the pair has continued to bargain in a range $1,4810-$ 1,4970.
USD/JPY having tested a yesterday's low on mark Y94,40, the pair has become stronger above level Y96,00.
US data is at 1330GMT with the weekly jobless claims and trade data.
The international trade gap is expected to narrow to $57.0 billion in
September. The import price index was down 3.0% in September on a sharp
dip in imported petroleum prices.