European session: the dollar fell to a six-week low against the euro

The dollar fell to a six-week low against the euro as a measure of Chinese manufacturing increased, damping demand for the U.S. currency as a haven. China’s official Purchasing Managers’ Index in the manufacturing industry rose to 50.6 in November, the highest reading in seven months, the National Bureau of Statistics and China Federation of Logistics and Purchasing said on Dec. 1. A measure above 50 indicates expansion.

The euro rose versus all but one of its 16 major peers as Greece prepared to open bids to repurchase bonds issued earlier this year. With Greece preparing to open bids today to repurchase bonds issued earlier this year, German Chancellor Angela Merkel told Bild newspaper yesterday that euro leaders might consider writing off debt once the country has a budget surplus. Germany has until now ruled out such a scenario as violating European Union treaties. A buyback is crucial for Greece to receive more funding.

A final reading of a gauge of factory output in the euro region will confirm the index was at 46.2 last month, the median estimate of economists showed before Markit Economics releases the figures today. That would be in line with an initial reading published on Nov. 22 that showed a contraction for a 16th-straight month.

The Dollar Index sank to a one-month low before a report today that economists said will show manufacturing in the world’s biggest economy expanded at a slower pace in November. The Institute for Supply Management Inc.’s factory index, a gauge of manufacturing in the U.S., fell to 51.5 in November from 51.7 the prior month, according to median forecast of economists before today’s report. Fifty is the dividing line between expansion and contraction.

Australia’s currency fell to the least in a week as a report showed retail sales stagnated in October, adding to speculation the Reserve Bank will lower borrowing costs tomorrow.

Australia’s statistics bureau said retail sales were unchanged in October after climbing in the previous two months. The figure compares with economist predictions for a 0.4 percent advance. Interest-rate swaps data traders see a more than 90 percent chance RBA Governor Glenn Stevens will cut the cash rate target by 25 basis points, or 0.25 percentage point, to 3 percent tomorrow.

The British pound continues to strengthen after the index of business activity in the manufacturing sector registered a growth of the UK to 49.1, exceeding forecasts and the previous value. Pound to be an interesting week, given that the Bank of England will hold a meeting on monetary policy. Despite the fact that the market is waiting for the Central Bank left rates and the asset purchase program unchanged, recent comments of the Bank of Mervyn King suggests that, in the coming months, the volume of purchases of government bonds can be increased.

EUR / USD: during the European session, the pair has grown, setting all-time high at $ 1.3074

GBP / USD: during the European session, the pair rose to $ 1.6087

USD / JPY: during the European session, the pair has set high at Y81.99

In the U.S. at 14:00 GMT will index of business activity in the manufacturing sector in November, and at 15:00 GMT - ISM manufacturing index for November.