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The euro declined for a second day before a report forecast to show German investor confidence fell to a three-year low as Europe’s debt crisis threatens to curb economic growth.
The 17-nation currency dropped against 10 of its 16 major counterparts as Spain prepares to sell up to 4 billion euros ($5.4 billion) of bonds on Nov. 17 after Italy’s borrowing costs surged to the highest level since 1997 at a note auction.
The New Zealand and Australian currencies declined for a second day as concern Europe will struggle to contain its sovereign-debt crisis sapped demand for riskier assets.
The so-called kiwi and Aussie dollars weakened versus most of their major counterparts as Asian stocks slid. Losses in Australia’s dollar were limited after the Reserve Bank said in minutes of its Nov. 1 meeting there was a case for keeping interest rates unchanged.
The Canadian currency dropped as crude oil, Canada’s biggest export, fell.
EUR/USD: on Asian session the pair fell.
GBP/USD: on Asian session the pair decreased.
USD/JPY: on Asian session the pair updated a week’s high, however has lost the positions later.
European data for Tuesday sees flash Q3 GDP data including France at 0630GMT, which is expected to come in at 0.4% q/q, while Germany at 0700GMT is expected to rise 0.5%. At 0915GMT, ECB Executive Board member Juergen Stark is due to give a speech entitled "Prospects of monetary policy in the euro area," in Luxembourg. EMU data continues at 1000GMT when the Q3 flash GDP is expected to rise 0.2% q/q. Trade data for September is also due at the same time. Also at 1000GMT, the German ZEW data is due. The current conditions measure is expected to slip to a reading of 32.0, while the economic sentiment measure is also expected to decline to a reading of -52.5. UK data at 0930GMT sees CPI. October was, undoubtedly, another month of very high inflation in the UK with the impact of hikes in domestic energy tariffs still coming through. US events start at 1230GMT when St. Louis Fed President James Bullard is due to deliver a speech on the economy outlook to the CFA Society of St. Louis. US data starts at 1245GMT with the weekly ICSC-Goldman Store Sales data. Also at 1300GMT, Chicago Fed President Charles Evans is due to deliver a speech to the Council on Foreign Relations in New York. US data continues at 1330GMT with Retail & Food Sales, PPI and also the NY Fed Empire State Survey.The weekly Redbook Average is then due at 1355GMT.
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