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The dollar weakened on speculation President Barack Obama’s re-election victory will boost chances the U.S. will continue monetary stimulus policies that tend to weaken the currency. The dollar reversed earlier gains versus the euro after Obama defeated Republican challenger Mitt Romney, according to television network projections that show the president winning the electoral votes needed for re-election. Romney had said he disagrees with the Federal Reserve measures to stimulate the economy and would replace Chairman Ben S. Bernanke at the end of his term in January 2014.
Demand for the euro was limited as Greece headed for a vote on austerity measures needed to keep its bailout on track. In Greece, the 238 pages of austerity measures, ranging from raising the retirement age two years to 67 to eliminating Christmas and holiday payments for pensioners, will be debated in the 300-seat Parliament from 10 a.m. Athens time with a roll- call vote expected after 8 p.m. today. Approval of the legislation is the first of the parliamentary votes required by Nov. 12 to unlock a 31 billion-euro ($40 billion) portion of international aid.
German industrial production probably fell for a second month in September, decreasing 0.7 percent from the prior month, according to the median estimate of economists in a Bloomberg News survey. A separate report may show euro-area retail sales slid 0.1 percent in September, according to another poll.
EUR / USD: during the Asian session, the pair rose on the floor of a figure to $1.2875.
GBP / USD: during the Asian session, the pair rose to $1.6035.
USD / JPY: during the Asian session the pair fell to the floor of a figure to Y79.80.
With the US election votes in and largely counted, attention refocuses on the fundamentals - although Wednesday sees a fairly light day, giving many the chance to get over a late night of election watching. The US starts clearing the bunting away early and readies for the 1100GMT release of the Nov 2 week MBA Mortgage Applications numbers are released. Late data, at 2000GMT, the September Consumer Credit numbers and the October Treasury Allotments By Class numbers will cross the wires.
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