European session: the euro still under pressure

Data:

09:30 UK Retail sales (October) 0.6% -0.2% 0.6%

09:30 UK Retail sales (October) Y/Y 

The euro approached a five-week low against the yen as Spanish and French borrowing costs rose at auctions, fueling concern the region’s debt crisis is worsening.

The euro earlier reached the weakest since Oct. 10 as Spain sold 3.56 billion euros ($4.8 billion) of a new 10-year bond at an average yield of almost 7 percent, the highest since the euro’s creation.

Spain’s Treasury’s average yield was 6.975 percent, up from 5.433 percent when it auctioned debt maturing in April 2021 last month.

French borrowing costs rose to 2.82 percent at an auction of July 2016 notes, up from 2.31 percent at the previous offer of the securities on Oct. 20.

The Dollar Index snapped three days of gains as economists said a U.S. report today will show first-time jobless claims rose last week.

EUR/USD: the pair lead european session in $1,3440-$ 1,3530 range.

GBP/USD: the pair lead european session in $1,5720-$ 1,5790 range.

USD/JPY: the pair was in Y76,90-Y77.10 area.

US data starts at 1330GMT with the weekly Jobless Claims as well as October's Housing Starts & Building Permits. Initial jobless claims are expected to rise 5,000 to 395,000 in the November 12 employment survey week after falling to 390,000 in the previous week. At 1730GMT, Cleveland Fed President Sandra Pianalto is due to deliver a speech on the economic outlook to Rotary Club of Lexington, while at 1750GMT, New York Fed President William Dudley delivers a speech on the economic outlook at policy at West Point.