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06:00 Germany Gfk Consumer Confidence Survey May 5.9 5.9 5.6
07:00 Japan BOJ Press Conference -
07:00 Switzerland KOF Leading Indicator April 0.08 0.26 0.4
12:25 Canada BOC Gov Carney Speaks -
12:30 U.S. GDP, y/y (preliminary) Quarter I +3.0% +2.6% +2.2%
12:30 U.S. PCE price index ex food, energy, q/q Quarter I +1.3% +2.3% +2.4%
12:30 U.S. Employment Cost Index Quarter I +0.4% +0.5% +0.4%
The euro dropped to a one-week low against the yen after Standard & Poor’s cut Spain’s credit rating and the nation’s unemployment rate jumped, adding to concern the region’s debt crisis is worsening. S&P cut Spain’s long-term credit rating by two steps to BBB+ from A late yesterday, saying the outlook is negative as the recession undermines efforts to trim the budget deficit. The euro erased losses against the dollar after Italy raised 5.95 billion euros ($7.87 billion) through a debt.
The yen strengthened against all of its major counterparts as investors sought safer assets even after the Bank of Japan expanded its asset-purchase program. Japan’s currency weakened earlier versus the dollar after the central bank expanded its plan for government-bond purchases by 10 trillion yen to help support the economy. The BOJ said it will boost its asset-purchase fund to 40 trillion yen by June 2013, compared with the previous target of 30 trillion yen by year-end. A separate central-bank program providing funds to banks was pared by 5 trillion yen amid lackluster demand for loans.
The dollar weakened before a U.S. report forecast to show growth in the world’s largest economy slowed last quarter. The dollar dropped against 12 of its 16 major counterparts before the Commerce Department releases its gross-domestic- product report for the first quarter.
EUR / USD: the pair grown, showed high above $1,3250.
GBP / USD: the pair grown, showed high above $1,6230.
USD / JPY: the pair fell above Y80, 48.
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