European session: The dollar weakened
Data:10:00 UK CBI retail sales volume balance (August) -14%
The dollar weakened against the euro and the yen slid versus most of its major peers as investors mulled whether Federal Reserve Chairman Ben S. Bernanke will announce further monetary stimulus for the economy tomorrow.
Speculation has intensified that Bernanke may signal a willingness to embark on a third round of so-called quantitative easing, or QE3, when he speaks in Jackson Hole, Wyoming.
The euro gained versus most of its major counterparts even as a report predicted German consumer confidence will fall.
The Nuremberg, Germany-based market research company GfK SE forecast its consumer sentiment index will decline for a sixth month in September amid household concerns that the global economy is slowing. That follows data this week that showed business confidence in Europe’s biggest economy was at the lowest in more than a year and investor sentiment slid the most in five years.
EUR/USD: the pair holds at yesterday's range.
GBP/USD: the pair holds at $1.6350-$ 1.6400.
USD/JPY: the pair become stronger above Y77.00.
US data start at 12.30 GMT with Jobless claims for Aug 20 wk. Est 416k.