European session: The euro weakened
07:00 UK Nationwide house price index (October) 0.4%
07:00 UK Nationwide house price index (October) Y/Y 0.8%
09:30 UK CIPS manufacturing index (October) 47.4
09:30 UK GDP (Q3) preliminary 0.5%
09:30 UK GDP (Q3) preliminary Y/Y 0.5%
The euro weakened for a third day against the dollar, extending yesterday’s 2 percent slump, as renewed concern Greece will default and the European Central Bank will cut interest rates damped demand for the currency.
Papandreou’s call for a referendum and a parliamentary confidence vote raised the prospect of derailing the European bailout effort and pushing Greece into default.
The euro fell the most in two weeks versus the yen after Greek Prime Minister George Papandreou pledged to put the European Union’s latest accord to a referendum, risking pushing the country into default if rejected by voters.
The dollar strengthened as stocks slid around the world and a Chinese report showed manufacturing slowed.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the U.S. currency against those of six trading partners, gained for a third day, rising 1 percent to 77.233.
EUR/USD: the pair fell in $1,3660 area.
GBP/USD: the pair showed low in $1,5900 area. USD/JPY: during european session the pair holds an Y78,00-Y78,25 area.
US data at 1400GMT includes the ISM Index and Construction Spending. The ISM manufacturing index is expected to rise slightly to a reading of
52.0 in October.