Asian session: gains in the euro were limited

Australia’s dollar dropped against all of its peers after the country’s statistics bureau said the number of permits granted to build or renovate houses and apartments fell 10.7 percent in October after dropping a revised 14.2 percent the previous month. Retail sales climbed 0.2 percent from a month earlier, when they rose 0.4 percent. China’s Purchasing Managers’ Index fell to 49.0 in November from 50.4 in October, the China Federation of Logistics and Purchasing said today. The median estimate in a Bloomberg survey of 18 economists was 49.8. A level above 50 indicates expansion.

Gains in the euro were limited before Spain and France sell securities amid concern Europe’s debt crisis will boost borrowing costs for the region’s nations. Spain will sell as much as 3.75 billion euros ($5 billion) of debt today maturing in 2015, 2016 and 2017. France will offer bonds maturing in 2017, 2021, 2026 and 2041 and may auction up to 4.5 billion euros of securities.

The Federal Reserve-led global effort to ease borrowing costs for financial firms shows both the central bank’s power to jolt markets -- and the limits of its ability to alleviate the European debt crisis. Stocks rallied worldwide, commodities rose and yields on most European debt fell after the Fed and five other central banks yesterday cut the cost of emergency dollar loans to banks outside the U.S. At the same time, the action falls short of more-drastic moves that central banks are reluctant to take, including purchases or guarantees of countries’ bonds.

EUR/USD: on Asian session the pair grew, but has fallen later.

GBP/USD: on Asian session the pair decreases.

USD/JPY: on Asian session  the pair gain.

European events for Thursday start at 0800GMT when ECB President Mario Draghi is due to present the ECB Annual Report at the

European Parliament Plenary. This morning also sees the release of the manufacturing PMIs from the main European states, including final data from France at 0848GMT, Germany at 0853GMT and leading up to the 0858GMT of the EMU final manufacturing PMI. European data also includes France car registrations at 1100GMT. As well as the BOE Financial Policy Committee note, UK data sees the 0928GMT release of the November Markit/CIPS Manufacturing PMI UK manufacturing is expected to contract in the fourth quarter, with the pace of contraction in November expected to more or less match that in October with a median forecast for today's data of 47. US data at 1330GMT, the weekly initial jobless claims are expected to fall 3,000 to 390,000 in the November 26 week. Also at 1500GMT the ISM manufacturing index is expected to rise to a reading of 52.0 in November after falling slightly in October. The regional data already released suggest only modest growth.