The following data were published:
16/11/08 23:50 Japan Tertiary activity index (September) -0,6% -1,4%
16/11/08 23:50 Japan Real GDP (Q3) preliminary -0,1% -0,7%
16/11/08 23:50 Japan Real GDP (Q3) preliminary Y/Y -0,4% -3,0%
00:01 UK Rightmove House Price Index (MoM) (Oct) -2,9%
00:01 UK Rightmove House Price Index (YoY) (Sep) -7,1%
00:30 Australia Real Retail Sales (QoQ) (3Q) 0,1%
The yen fell against the dollar and pared gains against the euro
as a rebound in Asian equities bolstered confidence in funding
purchases of higher-yielding overseas assets in the Japanese currency.
The yen also weakened against the Australian and New Zealand dollars,
favorites of so-called carry trades, as U.S. stock futures advanced.
The euro declined versus the dollar for a second day on speculation
that the European Central Bank will lower interest rates to help
bolster the 15-nation region's economy.
In carry trades, investors get funds in a country with low borrowing
costs and buy assets where returns are higher. Japan's 0.3 percent
target lending rate compares with 1 percent in the U.S., 3.25 percent
in Europe, 5.25 percent in Australia and 6.5 percent in New Zealand.
The yen had strengthened earlier after the Group of 20 nations failed
to agree on specific measures to combat a global financial crisis,
prompting investors to sell higher-yielding assets funded in Japan.
The G-20 urged a ``broader policy response'' and set a March deadline
for recommendations on improving regulations at a summit that ended in
Washington on Nov. 15. Leaders of G-20 countries met as a seizure in
credit markets, stemming from losses of $964 billion on securities tied
to home loans, threatened to trigger a global recession.
Japan's government today reported that gross domestic product fell at
an annualized 0.4 percent pace in the three months ended Sept. 30,
after sliding at a 3.7 percent rate in the previous quarter. Economists
predicted 0.1 percent growth, a Bloomberg survey showed.
The euro declined on speculation that European central bankers will
signal further rate reductions after data on Nov. 14 showed the
15-nation euro area slid into its first recession since the currency's
introduction in 1999.
European Central Bank members Gertrude Tumpel-Gugerell and Axel Weber
speak at 9 a.m. and 9:50 a.m., respectively, in Frankfurt. Central
banks around the world may lower rates as inflation slows amid a global
recession, ECB President Jean- Claude Trichet said in Sao Paulo on Nov.
10.
Traders increased bets that the ECB will reduce its 3.25 percent
benchmark interest rate. The implied yield on Euribor futures contracts
expiring in March fell to 2.81 percent on Nov. 14 from 3.15 percent at
the end of last month.
EUR/USD having begun session in the field of $1,2536, the pair
has slightly become stronger to the beginning of the European session
up to a level $1,2585.