Asian session: the yen rose against most of its 16 major counterparts

The yen rose against most of its 16 major counterparts before a German report forecast to show a gauge of business confidence dropped for a fifth month, increasing the allure of the Japanese currency as a haven.

The yen briefly pared gains after Standard & Poor’s said Japan’s lack of progress in tackling its public debt burden risks a credit rating downgrade.

The U.S. dollar dropped against the euro as speculation increased that the greenback’s 1.2 percent jump yesterday was excessive.

The Ifo institute’s business climate index for Germany dropped to 105.2 in November, the lowest since March 2010, according to the median forecast of economists in a Bloomberg News survey. The Munich-based group will release the data today.

U.S. financial markets will be closed today for the national holiday.

British pound rose. Bank of England policy maker David Miles said there’s a risk a country may leave the 17-nation euro area and that the threat from the region’s crisis has increased uncertainty about the outlook for the U.K. economy.

“I don’t think any of us can feel confident one way or another about whether all the countries that are currently in the euro zone will still be in it,” Miles said in an interview on ITV broadcast late yesterday.The Office for National Statistics will publish the GDP data at 9:30 a.m. in London. The median of 32 economists in a Bloomberg News survey is for a 0.5 percent increase, unchanged from an estimate published on Nov. 1.

EUR/USD: on Asian session the pair restored.

GBP/USD: on Asian session the pair gain.

USD/JPY: on Asian session  the pair fell.

US markets are closed Thursday, as the nation enjoys the annual Thanksgiving Day holiday. However, Europe provides a full calendar for the day.At 0815/0530 European Commission President Jose Barroso gives a speech at a conference, in Brussels, with observers looking for any expansion of the previous day's euro bond comments. Data starts at 0900GMT, Germany's November IFO business survey is released, along with Italian November ISTAT consumer survey. At 0930GMT, Bundesbank Board member Rudolf Boehmler gives a speak on the debt crisis, in Hohenheim, Germany. The main event for the day is likely to be the summit when French President Nicolas Sarkozy meets German Chancellor Angela Merkel and Italian Prime Minister Mario Monti, in Strasbourg. A press conference is provisionally slated for 1300GMT. UK data is slated for 0930GMT, with the release of Q3 GDP, Second Estimate and the Sep Index of Services.