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The euro rallied the most against the yen in almost six weeks as Japan planned to buy bonds issued by Europe’s financial-aid funds, joining China in assisting the region as it confronts its debt crisis. The euro also gained versus the New Zealand dollar and the South African rand as Japan’s Finance Minister Yoshihiko Noda said it’s appropriate for his nation to help nations such as Ireland.
Europe’s financial aid funds for distressed governments will sell bonds to raise as much as 34.1 billion euros ($44.2 billion) for Ireland in 2011 and 14.9 billion euros in 2012, the European Commission said last month.
Australia’s dollar fell against all of its most-traded counterparts as rising floodwaters rushed toward the coastal city of Brisbane, where evacuations were under way.
The greenback rose versus the yen for the first time in three days before figures expected to show the world’s largest economy is recovering.
U.S. retail sales climbed 0.8% last month, the same amount as in November, according to the median forecast of economists. The report from the Commerce Department is due Jan. 14.
EUR/USD: the pair bargained within the limits of $1,2905-$ 1,2990.
GBP/USD: on results of yesterday's session the pair become stronger in around $1,5600.
USD/JPY: on results of yesterday's session of loss of yen against dollar have made about 50 points.
European data starts at 0700GMT Wednesday with the 2010 German GDP data, which should confirm the decent rebound with a 3.6% y/y reading. France releases it's November balance of payments data after that, at 0745GMT, while the VDMA new machinery orders data is due at 0900GMT. EMU industrial output data follows at 1000GMT and is expected to show a gain of 0.5% m/m for November, 5.9% y/y.
UK data at 0930GMT includes Trade data, where the median forecast for the total trade balance is -stg3.8 billion with Global goods trade at -stg8.4 billion.
US data starts at 1200GMT with the weekly MBA Mortgage Application Index. This is followed at 1330GMT with the December Import/Export Price Index data.
The weekly EIA Crude Oil Stocks data is then due, at 1530GMT.
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