European session:

Data:

09:30 UK PSNCR (October), bln -0.6

09:30 UK PSNB (October), bln 3.3

09:30 UK PSNBX (October), bln 6.5 

The yen weakened against most of its major counterparts after ratings companies affirmed the U.S.’s credit grades, reducing demand for safer investments.

S&P said the failure of the so-called supercommittee doesn’t affect the U.S.’s AA+ rating and the negative outlook for the debt. The company stripped the U.S. of its top AAA credit grade on Aug. 5. Moody’s affirmed the Aaa credit rating and maintained its negative outlook. Fitch Ratings said the failure would likely lead to a revision of the U.S. rating outlook to negative.

Yesterday was the deadline for the Congressional Budget Office to receive information for analyzing how a proposal would affect the deficit, in advance of the supercommittee’s Nov. 23 deadline. The failure to agree sets the stage for $1.2 trillion in automatic spending cuts.

The pound weakened for a third day against the euro on speculation U.K. central-bank minutes tomorrow will signal policy makers are leaning toward further monetary stimulus as growth slows.

Sterling dropped to a three-week low versus the shared currency even after a report showed Britain’s budget deficit narrowed in October as Chancellor of the Exchequer George Osborne slashed government spending. Prime Minister David Cameron said yesterday Britain is “well behind” where it needs to be on economic growth. The Debt Management Office sold 3.5 billion pounds ($5.5 billion) of index-linked gilts.

EUR/USD: the pair has grown above $1.3500, showed high in $1,3560 area.

GBP/USD: the pair was trading in $1,5620-$ 1,5690 area.

USD/JPY: the pair returned below Y77,00.

At 1330GMT, the Canadian September retail sales numbers are out.The main US release is at 1330GMT, with teh release of the US Q3 GDP second reading. Third quarter GDP is forecast to be revised down to a 2.4% rate of growth. The key factors are expected to be upward revision to PCE, nonresidential fixed investment, and residential fixed investment that should be offset by downward revisions to inventories and net exports. The chain price index is expected to be unrevised at +2.5%. At 1355GMT, the Nov 19 week Redbook Average data is released.At 1800GMT, Minneapolis Federal Reserve Bank President Narayana Kocherlakota speaks to CFA Winnipeg, Canada.