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00:30 Australia Home Loans October 1.1% +3.1% +0.1%
02:00 China Trade Balance, bln November 32.0 26.7 19.6
05:00 Japan Consumer Confidence November 39.7 40.3 39.4
06:00 Japan Eco Watchers Survey: Current November 39.0 39.7 40.0
06:00 Japan Eco Watchers Survey: Outlook November 41.7 41.9
The euro traded 0.2 percent from its lowest level in two weeks after Italy’s prime minister said he intends to resign, rekindling concern that a change in government will upend efforts to rein in debt. Italy’s Mario Monti will try to corral his coalition, which includes his predecessor Silvio Berlusconi’s People of Liberty Party, for a vote to pass budget legislation before handing in his “irrevocable resignation,” national President Giorgio Napolitano’s office said in an e-mailed statement on Dec. 8. Monti, 69, will quit immediately if his allies won’t comply, the premier’s spokeswoman, Elisabetta Olivi, said in a telephone interview.
The euro slid versus most of its 16 major counterparts ahead of a Dec. 13-14 summit of European Union leaders to debate a road map to overhaul the currency bloc.
Demand for the dollar was limited amid speculation the Federal Reserve may announce this week additional bond purchases. In the U.S., the Federal Open Market Committee meets for the final time this year on Dec. 11-12. It will consider whether to expand purchases of assets after its Operation Twist program of swapping $45 billion a month in short-term Treasuries for long-term debt expires this month. Expectations for more central bank stimulus come as data released Dec. 7 by the Labor Department showed the unemployment rate in the world’s biggest economy dropped to 7.7 percent, the lowest level since December 2008.
Australia’s currency slid after data from China’s customs administration showed that exports rose 2.9 percent in November from a year earlier while imports were unchanged. Both trailed the median analyst estimates in a Bloomberg News survey.
EUR/USD: during the Asian session, the pair traded in the range of $1.2885-15.
GBP/USD: during the Asian session the pair fell to $1.6015.
USD/JPY: during the Asian session the pair was trading around the level of Y82.50.
Wednesday's European calendar gets underway at 0800GMT, with the release of Spanish October industrial output data offering a further look at the depth of the recession in Spain. However, the main releases start from 0813GMT, as eurozone service sector final November PMI numbers cross the screens. Spanish data is at 0813GMT, Italy at 0843GMT, France at 0848GMT, Germany at 0853GMT and the aggregate eurozone PMI is due at 0858GMT. The UK also sees the release of service sector PMI data, with the November Markit/CIPS Services release due at 0930GMT. More EMU data is expected at 1000GMT, with the release of the October retail trade numbers.
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