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The shared currency climbed to the highest in almost a week against the Swiss franc before a bond auction in Spain tomorrow that may see demand from China, which has expressed interest in buying the nation’s debt. The Australian dollar fell to a one- month low against the greenback amid concern worsening floods will slow growth and keep the Reserve Bank from raising interest rates.
The euro rebounded yesterday after Japan said it plans to buy bonds issued by the European Union’s financial-aid funds, echoing a pledge by China to help stem the region’s debt crisis. Widening budget gaps and a surge in bond yields forced Greece and Ireland to accept bailouts last year.
Australia’s currency weakened versus all of its 16 major counterparts as Brisbane faced its worst floods since 1893 and rivers swollen with heavy rain raced toward the city, triggering evacuations.
Canada’s dollar gained for a fourth day versus its U.S. counterpart before a report today that may show Canadian new- home prices rose for a fourth month, adding to signs the economic recovery is building momentum.
EUR/USD: the pair become stronger in around $1,3000.
GBP/USD: the pair bargained above a mark $1,5600.
USD/JPY: the pair decreased in around Y83,00.
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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