EU session review: Yen declines versus Euro, snaps 5-day gain

Data released
09:30     UK     BoE meeting minutes (08-09.12)              
09:30     UK     GDP (Q3) final Y/Y    0.7%    0.8%    0.8%
09:30     UK     GDP (Q3) final Y/Y     2.7%    2.8%    2.8%
09:30     UK     Current account (Q3), bln     -9.6    -8.4    -7.4

The dollar weakened before data forecast to show the U.S. economy is gaining strength, stoking investor demand for higher-yielding assets.
The U.S. currency fell before reports that are expected to show U.S. GDP grew more than previously calculated and existing home sales increased.
“Home sales are the weakest element of the whole U.S. story so we are looking for a bounce back there in existing home sales,” said Jeremy Stretch at Canadian Imperial Bank of Commerce. “If we get a positive number or something in line with expectations, then that would be helpful for risk appetite and would probably be supportive for euro-dollar and for the other riskier crosses.”
The euro gained as German import prices in November climbed the most in a decade.
The euro gained after import prices in Germany, Europe’s biggest economy, climbed 10% in November from a year earlier, the most in 10 years, after a 9.2% increase in October, the Federal Statistics Office said today. Italy’s retail sales rose 0.3% in October from a month earlier.
The pound slipped after the U.K. economy expanded at a slower rate than previously estimated, while the Swiss franc strengthened to a record against the common currency for a sixth day.
Data from the Office for National Statistics showed Britain’s gross domestic product rose 0.7% in the third quarter. That compares with an initial estimate of 0.8%. Second-quarter growth was revised to 1.1% from 1.2%.
Minutes of the Bank of England’s December meeting showed policy makers remained split in their decision to keep the benchmark interest rate at a record low 0.5% and the asset-purchase program unchanged at 200 billion pounds.

EUR/USD printed session highs on $1.3180 before settled back to $1.3130. Later rate recovered to $1.3150.

GBP/USD fell from $1.5490 to $1.5424 after weak UK data. then rate managed to rebound to $1.5462.

USD/JPY weakened to Y83.40 before recovered to Y83.60.

Focus later today will be on the US Q3 GDP (1330GMT) and November Existing home sales data at 1500GMT.
The world’s largest economy grew at a 2.8% annual rate in the third quarter, according to the median estimate of economists .
U.S. existing-home sales increased to a 4.75 million annual rate in November, up 7.1% from October, according to the median estimate of economists.