American focus: the yen fell to a two-month low against the dollar

The yen slipped to the weakest level in almost two months versus the dollar as speculation that the Bank of Japan will boost stimulus measures sapped demand for the nation’s assets as a haven. This month, the Bank of Japan may disclose the assumption that in the next two financial years, he could not reach the target level of inflation at 1%. Later this month, the central bank will release updated economic forecasts for 2012/13., As well as the original forecasts for 2014 fiscal year. This publication is to show that the CPI excluding food does not make it to the 1%. The fall in prices accelerated in May, which increased the pressure on the central bank with respect to reverse deflation and stimulate economic growth. Experts predict that at the meeting of October 30 Bank of Japan newly expanded program of asset purchases.

The euro snapped a two-day gain versus the dollar as German Chancellor Angela Merkel said the region’s debt crisis won’t be quickly solved. Market participants still do not expect that the summit will be taken any important decisions. Spain, as expected, will not make a request for assistance, at least until next month. In addition, the EU's leaders are unlikely to make a decision about whether to grant Greece the next tranche of aid. However, the euro was supported by the hope that in the coming weeks, Spain finally make concessions and ask for help, and the partners of Greece from the euro zone, in the end, to give the country more time to achieve target levels of budget deficits.

The U.S. dollar regained some lost ground after the release of U.S. economic data, will weaken investor confidence in the strength of the economic recovery. The dollar rose after a report according to which the number of applications for unemployment benefits in the U.S. rose more than expected. Meanwhile, the index of business activity Philadelphia Fed pointed to some weakness.

The pound rose against the dollar after the September retail sales in Britain were more than expected. Key indicator and the indicator excluding fuel reported an increase of 0.6% against expectations of 0.4%. In annual terms, the main index remained unchanged at 2.5%, while the indicator excluding fuel rose 2.9% vs. 2.1% and 2.4% respectively.