European session: the dollar rose sharply

Data

01:30 Japan Labor Cash Earnings, YoY November +0.2% -0.4% -1.1%

07:45 France Consumer spending November -0.2% 0.0% +0.2%

07:45 France Consumer spending, y/y November -0.5% -0.6% -0.2%

07:45 France GDP, q/q(finally)Quarter III +0.2% +0.2% +0.1%

07:45 France GDP, Y/Y(finally)Quarter III +0.2% +0.1% 0.0%

In today's trading the dollar has appreciated sharply against the euro, while showing the greatest growth this week, driven by speculation that U.S. lawmakers will not be able to avoid the so-called "financial cliff", which is reflected in higher taxes and spending cuts more than $ 600 billion

Meanwhile, the dollar index (DXY) rose to two-week high, as many market participants are waiting for a meeting of U.S. President Barack and the leaders of the Democratic and Republican parties, to be held today, and the purpose of which will be to address the situation.

The euro fell against all but two of the 16 major currencies, after the yield on Italian bonds maturing in November 2022 rose to the level of 4.48%, compared to 4.45% at the previous auction, while on bonds maturing in November 2017 rose to 3.26% from 3.23%. Well as the pressure on the currency has a report that showed that the French economy grew less than previously estimated.

The yen weakened to a 28-month low against the dollar after data showed that Japanese consumer prices and industrial production fell more than expected. At the same time, economists note that the weak economic reports increase the likelihood of increased stimulus measures by the central bank of the country.

Also today, JPMorgan Chase & Co. downgraded its forecast for the yen, saying the currency will fall to Y90 to the dollar in the second quarter of next year amid deteriorating trade surplus of Japan. Earlier, it was reported the fall of the yen to the level of Y83.

EUR / USD: during the European session, the pair fell to $ 1.3167, and is now trading at $ 1.3187

GBP / USD: during the European session the pair fell to $ 1.6076, but then recovered, setting all new session high.

USD / JPY: during the European session the pair fell to Y85.95, then increased and is now at around Y86.10

At 14:45 GMT the U.S. will index of business activity in the manufacturing sector according to the Chicago Association of Managers for December. At 15:00 GMT the United States will be published on the number of pending home sales for November. At 16:00 GMT the United States will report on oil reserves according to the Ministry of Energy.