07:00 Germany CPI (October) final -0,2%
07:00 Germany CPI (October) final Y/Y 2,4%
07:00 Germany HICP (October) final Y/Y 2,5%
The yen rose, heading for weekly gains against the dollar and the euro, on speculation a prolonged global recession will prompt investors to pare holdings of higher-yielding assets funded in Japan.
Japan's currency also climbed this week against the Australian and New Zealand dollars on speculation a Group of 20 nations summit will fail to reach a consensus on how to tackle the global financial crisis. The euro and the pound headed for weekly declines on speculation central banks in Europe and the U.K. will lower interest rates as growth slumps.
U.S. President George W. Bush yesterday urged leaders of the world's biggest economies not to abandon free-market capitalism following the seizure in credit markets. G-20 leaders including Australian Prime Minister Kevin Rudd and French President Nicolas Sarkozy have used the crisis to demand greater government control of markets and to attack the U.S. for failing to rein in investors and speculators.
Leaders of G-20 countries gather in Washington today to debate proposals ranging from curbing executive pay and restraining hedge funds to raising capital requirements for banks.
The yen was also buoyed on speculation its 2.7 percent slide against the dollar and 4.8 percent tumble against the euro yesterday was excessive. U.S. stocks rallied the most in two weeks and crude oil rebounded from a 21-month low yesterday, sparking the yen's decline.
Gross domestic product in the 15 euro nations shrank 0.2 percent in the third quarter after contracting by the same amount in the previous three-month period, according to a Bloomberg survey. Two consecutive quarters of contraction would mark the first recession since the single currency was introduced in 1999. The European Union's statistics office will release the data at 11 a.m. today in Luxembourg.
Germany, Europe's largest economy, entered a recession in the third quarter, data showed yesterday.
The Bank of England is prepared to cut rates from 3 percent after predicting U.K. gross domestic product will contract by an annual 1.8 percent in the first quarter, Governor Mervyn King said on Nov. 12.
EUR/USD having begun session in the field of $1,2770, the pair has decreased in area $1,2670.