Asian session: the dollar and the yen declined against most of their major peers

The dollar and the yen declined against most of their major peers as evidence the U.S. economy is gaining momentum eased demand for havens. U.S. Labor Department figures yesterday showed initial jobless claims decreased by 19,000 to 366,000 last week, the fewest since May 2008. The median forecast of economists surveyed by Bloomberg News was 390,000.

The Australian dollar rebounded from two- week lows as Asian stocks extended gains in equities globally, boosting demand for higher-yielding assets.

The euro headed for the steepest weekly drop versus the greenback in three months as European nations prepare for bill auctions next week amid concern policy makers can’t contain the region’s debt crisis.

France is scheduled to sell as much as 7 billion euros ($9.1 billion) of bills on Dec. 19. Spain and Greece will also offer short-term government securities next week. Gains in the euro were also limited after European Central Bank President Mario Draghi said yesterday there’s no “external savior” for indebted countries that don’t implement structural reforms and the central bank’s program of buying government bonds isn’t limitless.

EUR/USD: on Asian session the pair rose.

GBP/USD: on Asian session the pair rose.

USD/JPY: on Asian session  the pair holds in range Y77.80-Y77.90

On Friday at 0830GMT when ECB President Mario Draghi chairs a panel on monetary policy and payment systems, with Bank of England Governor Mervyn King and former Fed vice chairman Donald Kohn. At 0900GMT, ECB Governing Council member Ewald Nowotny gives a press conference on financial stability, in Vienna.EMU data at 1000GMT sees construction output and the trade balance for october as well as Q3 labour costs data.US data starts at 1330, when consumer prices are expected to hold steady in November after falling in October. At 1615GMT, Chicago Federal Reserve Bank President Charles Evans takes part on a panel at the EC2 Conference

on econometric tools for policy making after the crisis, in Florence, Italy, while at 1700GMT, the Dallas Fed President delivers a speech on

the economic outlook at the Austin Chamber of Commerce 2012 Economic Forecast Luncheon in Austin.