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The dollar traded 0.2 percent from the weakest in almost two years versus the euro before reports today forecast to show diverging confidence in the U.S. and in Europe’s largest economy. The Thomson Reuters/University of Michigan consumer sentiment index probably fell to 75 this month, the lowest since January, and compared with 77.5 in September, according to the median economist estimate in a Bloomberg News survey before today’s data. A preliminary reading for October was 75.2. Separate reports yesterday showed more Americans than forecast filed jobless-benefit claims and manufacturing growth slowed.
In Germany, Europe’s biggest economy, the Ifo institute’s business climate index probably climbed to 108 this month, the highest since April 2012, and compared with 107.7 in September, a separate survey showed before the figures today.
New Zealand’s dollar weakened against all its major peers after the nation’s central bank signaled hesitation to raise borrowing costs.
EUR / USD: during the Asian session the pair rose to $ 1.3830
GBP / USD: during the Asian session, the pair rose to $ 1.6245
USD / JPY: during the Asian session the pair fell to Y96.90
There is a full calendar on both sides of the Atlantic Friday, with Germany's Ifo and the UK GDP data set to dominate the morning session. Early data sees the release of the German August construction orders at 0600GMT. At 0700GMT, Spain's September PPI data will cross the wires. There is a raft of data set for release at 0800GMT, including EMU M3 numbers, Italian August retail sales data and Germany's October IFO business climate index. At 1730GMT, ECB Governing Council member Luis Maria Linde will give a speech on Spain's Economic Crisis" in Granada, while ECB Executive Board member Joerg Asmussen delivers a speech at awards ceremony in Milan from 1930GMT. The UK's Q3 GDP data will be released at 0830GMT, along with the August Index of Services data.
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